IC Markets

Ramaphosa’s Win in ANC Election Strengthens Rand

South African RandYesterday, Cyril Ramaphosa, who is the Deputy President of African National Congress emerged as a winner of the nail-biting party leadership election against ANC MP Nkosazana Dlamini who happens to be the ex-wife of Jacob Zuma.

This, in turn, has strengthened Rand currency against Greenback. This recent win has paved the way for Cyril to become the President of the country in the next general elections to be held in 2019.

For the past 23 years, ANC has been the significant party governing South Africa. After the recent victory of Ramaphosa in the party elections, Rand is in a strong position against US Dollar.

On Friday, Dlamini faced a setback after a court ruling against the eligibility of few ANC delegates. As a result of which, around 27 Provincial Executive Committee and 14 branches were prohibited from voting. About 5,000 delegates have cast their vote for the party leadership in the recent elections.

SABC Digital News

Ramaphosa entered into business after leading the talks in the 1990s for ending the apartheid rule.  Hence, he has all the needed support and backing from his community members. He is known for voicing his opinion against corruption. Dlamini has always criticised the white-owned business.

He had earlier served as a Health Minister when Nelson Mandela was the President of South Africa. She has been instrumental in banning smoking at public places. She has also served as Foreign Minister of South Africa.

The current official unemployment rate of South Africa is 28%, and the country needs immediate reform to fix this problem. More than 5 million people have HIV. The distribution of income has become far more skewed than it had been during the Apartheid period.

Last month, Standard and Poors downgraded the sovereign debt rating of South Africa below investment grade level. Moody’s is the only credit rating agency that has maintained excellent rating for the debt of South Africa.

South Africa would be excluded from global bond indices if Moody’s also downgrades its ratings. It would mean an outflow of foreign investments in the range of ZAR 100-180 billion and sale of index-based funds. This, in turn, would have a terrible impact on the overall Rand currency.

But the good news is that the recent victory of Ramaphosa in the ANC elections has avoided the nightmare, and things seem to be better for now. It is interesting to note that Rand currency pair has now strengthened as compared to its value in March 2017. We speculate the currency to increase further to 11.20 levels.

Steven Rudford

Steven Rudford

Hello, my name is Steven Rudford. Welcome to Top10FX.net. Follow my website for the most trustworthy Forex broker reviews and last minute financial trading news.

IC Markets

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