S/Africa”s President Zuma changes finance minister

South African President Jacob Zuma removed Finance Minister Nhlanhla Nene from his position on Wednesday, sending the currency to a record low as markets responded to the shock axing. Nene’s dismissal comes on the heels of a credit rating downgrade to just one notch above sub-investment grade by Fitch last Friday, and at a time […]

South African President Jacob Zuma removed Finance Minister Nhlanhla Nene from his position on Wednesday, sending the currency to a record low as markets responded to the shock axing.
Nene’s dismissal comes on the heels of a credit rating downgrade to just one notch above sub-investment grade by Fitch last Friday, and at a time when South Africa’s economy is barely growing, squeezed by low commodity prices globally and the near certainty of an interest rate hike in United States next week.
Since his appointment in mid-2014 Nene has emphasized the need to cap government spending, reign in bailouts to state-owned firms, and limit the size of wage increases to government employees.
The announcement pushed the already weak rand to the precipice as the currency shed close to 5 percent to its lowest level ever, with analysts expecting to fall even further as investors digest the news.
 Zuma gave no details on why Nene, who has been serving as head of the treasury for just under two years, was dismissed.
Member of Parliament David Van Rooyen would take up Nene’s position appointed, Zuma said in a statement.