S.African rand slips as cabinet announcement appears nearer
8:44 am Tuesday, June 25th, 2024
JOHANNESBURG (Reuters) -The South African rand weakened in volatile trade on Tuesday as comments from the two biggest parties in the unity government suggested a cabinet announcement by President Cyril Ramaphosa was drawing nearer.
The currency was about 0.3% weaker at 18.16 to the dollar by 1220 GMT, adding to losses a day earlier.
Financial markets have been on tenterhooks over how Ramaphosa’s new cabinet will look, as it will give a good indication of how the African National Congress party intends to share power with its largest rival, the Democratic Alliance.
In total 10 political parties signed up to the unity government after the ANC lost its parliamentary majority in an election last month for the first time since the end of apartheid three decades ago.
Asked whether a cabinet announcement was imminent, a senior member of the DA’s negotiating team, Helen Zille, told Reuters on Tuesday: “I think you could hear something in the next 24 hours.”
An ANC spokesperson said the party had given its communications team a time frame of roughly 24-36 hours for the cabinet to be made public.
Ramaphosa’s spokesperson declined comment on the time frames given by the DA and ANC.
Local media including news website News24 earlier reported that negotiations between the ANC and DA were progressing and a deal might be reached that would allow Ramaphosa to announce his executive by Wednesday.
Commerzbank analysts said investors were focusing on how many ministerial positions the pro-business DA would get.
“The more and the more senior, the better (for markets),” they said in a research note.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index was around 0.7% weaker. The benchmark 2030 government bond was stronger, as the yield fell 5 basis points to 9.805%.
(Reporting by Tannur Anders, Wendell Roelf and Alexander Winning; editing by Mark Heinrich)
