Yesterday was the fifth anniversary of the beginning of the end for the Zuma kleptocracy.
Also read: What’s next for the Rand, SA after ratings downgrades: Forex expert Andy Rissik
On 13 December, 2015, previously ejected Pravin Gordhan was re-appointed South Africa’s minister of finance as a consequence of the Nenegate disaster. The exchange rate – which had lost half its value in a few weeks – started a recovery that lasted two years. The financial world realised what Zuma and the Guptas did not – their audacious attempt to capture National Treasury was their great over-reach.
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The graph above, which tracks the Rand over the past seven years, illustrates the point – and helps us better understand the currency’s recent volatility. That blowout from R14 to R19 against the US Dollar during the initial Covid-19 panic is almost a mirror image of what happened around Nenegate.
Also read:Â How to use the devalued rand to create global wealth
But just like what happened post-Gordhan’s 2015 appointment, as the world realised the coronavirus is not an indiscriminate killer, we’ve seen a clear reversion of the Rand to its the longer-term mean. The graph suggests the extreme volatility is now over. So, with a bit of luck we can expect the exchange rate to move back into its long-term, predictable trend of slow decline.
PODCAST ALERT…
Join me at noon tomorrow for 2020’s final monthly update of the BizNews share portfolio. It’s for Premium members only. We’re selling out of one counter and looking closely at adding a new one. Here’s the link to register: https://attendee.gotowebinar.com/register/5906189847824912656
TO LISTEN…
Latest audio on BizNews Radio.…..(click on the link to access)
- Flash Briefing: Multinationals reimburse billions over State Capture
- Building wealth for the long-term with Dawn Ridler and friendsÂ
- Week in Review: McKinsey; More Covid-19 swindling.
- Inside Covid-19: Cracking interviews with Venter, Battacharya
- Discovery’s biggest bet – meet Hylton Kallner, new Bank CEOÂ
TO WATCH…
Plenty to choose from on the BizNews TV channel on Youtube…
