NEWS

Rand Drops After Zuma's Surprise Cabinet Reshuffle

"The rand immediately spiked to R13.39 following the announcement."

17/10/2017 12:10 SAST | Updated 17/10/2017 13:30 SAST

The rand has lost more than 0,5 percent within minutes -- after President Jacob Zuma announced another cabinet reshuffle on Tuesday, according to Fin24.

Former State Security, Minister David Mahlobo has been given the Energy portfolio -- replacing Mmamaloko Kubayi, who is now in charge of Communications.

Blade Nzimande, the now former Higher Education and Training Minister has been sacked and replaced by Professor Hlengiwe Mkhize. The latter's Home Affairs portfolio will be taken up by Ayanda Dlodlo. Dlodlo's Communications portfolio will be taken over by Kubayi.

Fin24 reported the rand immediately spiked to R13.39 following the announcement. An hour before, the unit had been trading at R13.37 to the US dollar, from an overnight close of R13.31.

Zuma thanked the former members of the National Executive for "good service in their previous portfolios" and wished members assuming new portfolios well in their new responsibilities.