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South African Rand Plunges as Pravin Gordhan Summoned to Court

October 11, 2016 at 10:23 by Vladimir Vyun

100-rand notesThe South African rand plummeted today after Finance Minister Pravin Gordhan was officially summoned to court.

The Finance Minister was accused in unconstitutional creation of a special investigation unit during his time as head of the tax department. Gordhan called the accusation “political mischief.” The minister is respected by financial markets, and the news about what is widely considered to be political struggle between the Finance Minister and President Jacob Zuma was highly negative for the investors’ confidence in South Africa’s political and financial stability.

USD/ZAR jumped as much as 3.01% to 14.2256 as of 10:15 GMT today.

If you have any questions, comments, or opinions regarding the South African Rand, feel free to post them using the commentary form below.

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