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South Africa's rand falls after Finance Minister Nene sacked | South Africa's rand falls after Finance Minister Nene sacked |
(about 2 hours later) | |
South Africa's currency has fallen close to a record low, a day after Finance Minister Nhlanhla Nene was sacked, Reuters news agency reports. | |
President Jacob Zuma said that Mr Nene was being moved to "another strategic position". | President Jacob Zuma said that Mr Nene was being moved to "another strategic position". |
BBC Africa business reporter Lerato Mbele says that his attempt to rein in spending may have unsettled some people loyal to the president. | BBC Africa business reporter Lerato Mbele says that his attempt to rein in spending may have unsettled some people loyal to the president. |
The sacking comes as South Africa's economy is struggling to grow. | The sacking comes as South Africa's economy is struggling to grow. |
The rand fell to below 15 to the dollar on Thursday morning and stock prices also fell in Johannesburg as trading began, Reuters reports. | The rand fell to below 15 to the dollar on Thursday morning and stock prices also fell in Johannesburg as trading began, Reuters reports. |
Reaction - Lerato Mbele, BBC Business, Johannesburg | |
Shock, surprise and sarcasm dominate the reaction to the sacking of Mr Nene. | |
A cartoon called "Zuma's wrecking ball" of the president's head, cast in stone, butting everything in sight is being widely-shared on social media. | |
The general feeling is that President Zuma has dismissed a minister who stood for integrity and prudence in managing the country's finances. | |
Although Mr Nene was finance minister for just over 18 months, he has already been able to stand his ground on issues of wasteful government expenditure. | |
He has openly criticised wage increases for public servants; questioned the management of public utilities; opposed a bailout for the national airline and did not approve a proposal to buy the president a new private jet. | |
In the main, investors regarded him as a safe pair of hands steering South Africa's economy in uncharted waters, especially in the midst of the recent global volatility and the steep decline in commodity prices. | |
South Africa's finance ministry has come under "the most intense political pressure in recent months", reports the economic news website Fin24. | |
It suggests that Mr Nene's removal was down to his lack of "politcal clout". | |
He was seen as one of the few people in government to oppose certain spending plans, including a programme to build new nuclear plants, reports Business Day newspaper. | |
South Africa's main opposition leader Mmusi Maimane criticised the sacking on Twitter saying that Mr Zuma "has again proven himself to be a President incapable of making the right decisions". | |
Last week, two credit ratings agencies downgraded their assessments of South Africa. | Last week, two credit ratings agencies downgraded their assessments of South Africa. |
Fitch reduced its rating to just above junk status and Standard and Poor's moved its outlook from stable to negative. | Fitch reduced its rating to just above junk status and Standard and Poor's moved its outlook from stable to negative. |
Unemployment in South Africa is above 25% and the economy is growing very slowly. | Unemployment in South Africa is above 25% and the economy is growing very slowly. |
Mr Nene has been replaced by the relatively unknown David van Rooyen. | Mr Nene has been replaced by the relatively unknown David van Rooyen. |
Mr Van Rooyen has been the chairperson of parliament's finance committee and before becoming an MP was the mayor of Merafong, a town to the west of Johannesburg. |