Global financial markets react positively to Cyril Ramaphosa’s victory as ANC president

Durban – President Cyril Ramaphosa’s decisive victory at the ANC elective conference was widely welcomed by the international financial markets, with the rand strengthening against all three major currencies.

By noon on Monday, shortly after the results of the ANC’s elective conference was announced, the rand strengthened to R17.28 to the dollar after opening the day on R17.59 and way up from Friday’s opening of R17.63.

When it came to the pound sterling, the rand firmed to R21.06 at noon after opening the day at R21.41 and coming off the back of opening at R21.45 on Friday.

Gains were also made against the euro with the rand strengthening to R18.33 after opening the day at R18.68. On Friday the rand opened at R18.72 to the euro.

KwaZulu-Natal economist Bonke Dumisa told news channel eNCA the “numbers never lie”.

He said: “This [Ramaphosa’s election] gives the global markets some belief that this new ANC top seven is going to deliver.

“It also tells the market that it has been together in dealing with the economic issues. One of the very serious economic issues which has been debated seriously in South Africa is the whole issue of the nationalisation of the Reserve Bank …

“These are some of the difficult decisions that the ANC top seven has got to make, even when they are confronted with very populist issues, where the majority of the people who are their members are demanding those things.

“And that’s the type of decisiveness we need when it comes to the ANC. Because, yes, in the last five years, they had many problems. There were many areas of indecisions and businesses cannot deal with indecisiveness.”

Dumisa said while the markets did react positively to Ramaphosa’s election, the economy and currency did not solely depend on the ruling party or individual leaders.

He said it was important to focus on economic policies rather than individuals in office.

Ramaphosa was re-elected ANC president, with Paul Mashatile deputy president, Gwede Mantashe was re-elected as chairperson, Fikile Mbalula was elected secretary-general, treasurer general was Gwen Ramokgopa, first secretary was Nomvula Mokonyane and Maropene Ramokgopa was elected second deputy secretary.

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