31/03/2017 07:59 SAST | Updated 31/03/2017 08:07 SAST

Rand Hits New Low As Gordhan Is Axed

The Rand is in freefall, showing its lowest performance in two years.

REUTERS/Siphiwe Sibeko
A television presenter speaks in front of a reception with an electronic board displaying movements in major indices at the Johannesburg Stock Exchange building in Sandton Johannesburg, March 14, 2016.

The rand is well on its way to its biggest weekly slide since 2013, having lost over 8 percent of its value this week.

Fin24 reported that by 7am the Rand had reached R13.60 to the US dollar on Friday morning, as the country awoke to the news that President Jacob Zuma had reshuffled his Cabinet.

Razia Khan, chief Africa economist at Standard Chartered told Fin24: "Market reaction to the Cabinet reshuffle and what looks to have been a clean sweep of the Treasury top team is going to be a significant negative. Given past volatility in the rand when a Cabinet reshuffle was even suggested, the expectation is that the impact may be more pronounced now."

Finance Minister Pravin Gordhan was replaced by Home Affairs Minister Malusi Gigaba in the Cabinet reshuffle.

The rand is trading at R14.37 to the Euro and R16.80 to the British pound. It is reportedly the currency's worst performance since Nhlanhla Nene was fired in 2015.