5 important things happening in South Africa today
·14 Aug 2018
Here’s what is happening in and affecting South Africa today:
- The presidency is expected to announce an acting head of the National Prosecuting Authority as early as today, after the Constitutional Court ruled that the appointment of Shaun Abrahams was invalid. Former head, Mxolisi Nxasana was also ordered to pay back R10 million of the R17 million he was paid to leave the post to make way for Abrahams. [Reuters]
- The rand’s Monday plunge along with other emerging markets came as a shock to many, but the Reserve Bank says it is nowhere near the levels needed for it to intervene. The central bank said it would only get involved if the currency buckled to a level that threatened normal market operations. [Reuters]
- Analysts have warned that retailers and producers could try and pocket extra profits should suggested items because VAT-exempt, and recommended that government somehow police price changes. Six items have been proposed for zer0-rating, including white bread, nappies and school uniforms. [News24]
- National Treasury has denied that it has approved bailouts for SOEs amounting to R59 billion, refuting weekend reports saying that the bailouts were agreed upon at an ANC lekgotla. Treasury said that a lekgotla was not where budget votes were made. [Bloomberg]
- South Africa’s rand plunged more than 10% to a 2-year low against the dollar early on Monday and government bonds weakened sharply as a renewed rout in the Turkish lira spread to other emerging markets. On Tuesday the rand was at R14.33 to the dollar, R18.29 to the pound and R16.34 to the euro.
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