Rand Set to Surge If Zuma Loses Secret No-Confidence Ballot
- Fade move if Zuma stays; removal leads to more gains: BBH
- Rand overnight volatility surges to highest since early May
Annabel Bishop, chief economist at Investec Ltd, discusses the risk of a credit rating downgrade in South Africa and how that would negatively impact the nation's economy as President Jacob Zuma faces a no-confidence vote. She speaks on 'Bloomberg Markets: Middle East.' (Source: Bloomberg)
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The South African rand could surge if President Jacob Zuma is ousted by a motion of no confidence in the nation’s parliament, though gains would reverse if Zuma survives the vote, analysts say.
The currency rose for a second day after being the best performer among 31 major peers Monday as National Assembly Speaker Baleka Mbete said parliament would vote by secret ballot Tuesday.