The rand retreated on the strong gains made last week in the lead up to the ANC’s national executive committee meeting, after reports emerged saying\u00a0president Jacob Zuma survived and attempt by his detractors within the party to have him removed.<\/p>\n
In the days ahead of the ANC meeting, it was reported that Zuma’s removal was on the cards, with some hopeful analysts pointing to a waning in the president’s support base within the party.<\/p>\n
On top of more positive economic data, and global markets putting emerging economies in a more attractive light, the news of a possible Zuma exit boosted the rand to R12.66 against the dollar – its strongest position in recent months.<\/p>\n
However, the market was left disappointed when reports came out of the NEC that the president’s supporters squashed the challenge to his presidency comfortably.<\/p>\n
By 10h30 on Monday, the market reflected the outcome, down\u00a00.66% against the dollar on the day, or 2.2% off its recent best to R12.94.<\/p>\n
Figures leaked out of the meeting show that of 72 ANC members who debated the issue, only 18 supported the motion for Zuma to go.<\/p>\n
According to reports, citing party insiders, big names among those who wanted the president to step down include former finance minister Pravin Gordhan, ANC chief whip Jackson Mthembu, and ministers\u00a0Siyabonga Cwele, Aaron Motsoaledi and Rob Davies.<\/p>\n
Economist Dawie Roodt\u00a0said it has become clear that the rand is inextricably linked to Zuma, and economists and analysts can tell how the president is doing simply by looking at the rand vs dollar exchange rate.<\/p>\n
The rand weakening as it did, shows that market is ready for Zuma to step down.<\/p>\n
Nedbank analysts noted that local markets were keenly awaiting the outcome of the ANC NEC,\u00a0but have been left disappointed.<\/p>\n
The ANC is expected to brief the media on the outcomes of the meeting later on Monday.<\/p>\n