South African rand depreciates, eyes on the forthcoming cabinet announcement

The South African rand was weaker in early trading on Monday as markets awaited President Cyril Ramaphosa’s cabinet announcement. This follows the African National Congress’ loss of parliamentary majority in last month’s election, marking the first time in 30 years.


At 0556 GMT, the rand traded at 18.0075 against the dollar, about 0.22% weaker than its previous close. Nine parties have joined the ANC in a government of national unity (GNU), including the pro-business Democratic Alliance.


All eyes will be on Ramaphosa’s cabinet announcement, which is expected later this week. In his weekly newsletter to the nation on Monday, Ramaphosa stated that South Africans wanted elected representatives to work together to build the country, putting aside narrow interests. He emphasized that the GNU should not be preoccupied with jockeying for positions, tussles over appointments, or squabbles within and between parties. The upcoming cabinet announcement is expected to provide direction for the country’s financial markets. Additionally, Ramaphosa highlighted that the government’s top priority was economic growth for job creation.


South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 4 basis points to 9.725%.

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