Rand Slides Despite Confirmation Of Zuma Recall Amid Resignation Timeline Drama

Following repeated headlines and news reports that the South African president is set to resign, perhaps immediately, it was hardly a surprise this morning when South Africa's ruling party - the Africa National Congress - confirmed it has ordered President Jacob Zuma to resign, signalling an end to his scandal-hit rule and paving the way for Cyril Ramaphosa to take power.

And yet, the confirmation prompted the South African Rand (ZAR) to slump...

... with two reasons being cited:

First, the announcement had been largely priced in following press reports that the ANC would recall Zuma after its marathon 13 hour meeting by the National Executive Committee.

Secondly and more important, it remains unclear how and when Zuma will go. In particular, traders are responding to two Bloomberg headlines which sparked selling in ZAR:

  • *S. AFRICA'S ANC GIVING ZUMA TIME AND SPACE TO RESPOND.
  • *ANC HASN'T DISCUSSED ZUMA NO-CONFIDENCE MOTION, GIVING HIM TIME


Ace Magashule, the ANC’s secretary general, said Mr Zuma, who has resisted pressure to step aside, had asked to remain in office for between three and six months, but was rebuffed due to the urgency of restoring the integrity of public institutions. Mr Magashule, an ally of the president, suggested that the ANC would now seek to remove Mr Zuma through a no-confidence vote in parliament, a move that is likely to extend the crisis in the ANC.

“All necessary parliamentary processes that arise from this decision will now ensue,” he said, signalling that the ANC is preparing a vote of no-confidence in Mr Zuma.

This suggests that while Zuma is leaving, it will neither be imminent, or even delayed. Meanwhile, as Citi's desk notes, "Zuma will go, it is just a matter of how he will go …. This is positive although we may be in for a bumpy ride within the recent ranges until actual real news and clarification is a given."

Finally, the worst case scenario is that even if Zuma is formally recalled, that does not mean he will leave.

So what happens then?

Zuma's exit options are simple: if the president refuses to leave, then the ANC will be left with two options - a vote of no confidence and impeachment. The ANC is likely to prefer the former scenario given that the impeachment process would be long and drawn out, and need proof of misconduct. In regards to the no-confidence motion, the ANC says it has not discussed it yet. This would come as a disappointment that Zuma’s exit is not imminent.

 

Comments

Kagemusho Pausebreak Tue, 02/13/2018 - 11:02 Permalink

Nah, they don't have to do that,  anymore; they've come up in the world! They've got the Hippo Roller now (designed by a White guy, of course).  A simple solution for equally simple Sub-Saharan IQ minds that never developed the concept of the wheel in all  their thousands of years of 'culture'.

Hippo Roller: https://www.hipporoller.org/2017/10/brand-south-africa-water-dignity-hi…

 

In reply to by Pausebreak

wmbz Tue, 02/13/2018 - 07:45 Permalink

'Ol Zumba will hang in there as long as possible.

Stealing as much as he can get his paws on until the very last minute.

overmedicatedu… Tue, 02/13/2018 - 07:52 Permalink

take a rich country..put a justice warrior with black skin in leadership..and "see what happens Larry??"

been repeated all over africa and now here as well..the sjw progressives even called it "the new normal" as if that was an excuse..nuts

JohnGaltUk overmedicatedu… Tue, 02/13/2018 - 08:37 Permalink

Socialists are really funny how they describe socialism now because history has taught us all it ultimately ends in failure.

Uk Labour changed it to NEW Labour after all of their failings and often talked of a third way LOL which was just the old way but with the word NEW at the front.

Chavis, Venezuela talked of a NEW type of socialism.

Now Labour in the UK latest slogan is = NEW Economics. FFS.

In reply to by overmedicatedu…

Ace006 JohnGaltUk Wed, 02/14/2018 - 00:15 Permalink

The socialists were saying that FINALLY socialism was being done right in Venezuela. They probably figured it was safe to go out on a limb with oil revenue available to overcome all the usual socialist stupidities with brute financial force. Ha. Socialists can and do screw up making toast and Venezuela was doomed as all socialist experiments are.

You're right about "new." We've tried the same thing with "deal" and various adjectives. The very latest is adding "neo" to some noun and, voila, some thing new under the sun. Or, there are 70 years without National Socialism and, suddenly, boom. It's back. Just like before. Like cicadas.

In reply to by JohnGaltUk

otschelnik Tue, 02/13/2018 - 07:54 Permalink

We'll miss Jake and his 4 wives at international events like the BRIC conference, 20 summit, and the mundiale.  We'll also miss CNN's gushing admiration of him, the ANC, and his pioneering polygamy diversity.  

TheObsoleteMan Last of the Mi… Tue, 02/13/2018 - 11:19 Permalink

Whites left SA in droves {the ones that could} back when the ANC was handed the government twenty years ago. Then the exodus stabilized for several years, until recently. Since the death of Mandela, a second wave of "white flight" has begun, and it is larger than the first one. This is why the Rand is crashing, the brains of the country are leaving for another body.Where I live has a large white SA expat community. I have noticed recently something I never saw before. Earlier, it was the old and middle aged who were arriving. Now I am seeing young people in their 20s in large numbers. That is the death knell for SA.

In reply to by Last of the Mi…

To Hell In A H… Tue, 02/13/2018 - 08:10 Permalink

I laugh at ZH comment sections when we talk about African currencies, while Trump can announce $4 Trillion in spending. $1.5 Trillion in infrastructure alone and everybody keeps a straight face. 

Uncle scam is in $21 trillion of debt and rising. Over $80 trillion in unfunded liabilities, while under the privileged of dollar world reserve currency status. Lets not even go into the Petrodollar yoke placed on many a nations neck. Yet I witness time and time again, the same people ridiculing and laughing at Venezuela, Zimbabwe and any black nation in currency trouble.

The level of disconnect needed to laugh at S.A, without realising the USSA is bankrupt beyond redemption is one for the historians to mull over long after we have died. For the black Saffies to realise Zuma is a crook, a thief and corrupt, just like 90% of Capitol Hill and to reject him, despite him still blaming whitey. I see that as hope, in a country where whites are less than 10% of the nation yet we own over 80% of the land.

And before half of he usual morons rant about the state of South Africa, understand the terms of agreeing to end apartheid. We kept the land, the black South Africans took on all our apartheid government debt and if we didn't get to keep the bulk of our mining operations in South Africa, we truly promised to irradiate the mines with nuclear waste leaving it unworkable for humans and thus worthless. Even under these terms the blacks wanted to make things work and some people wonder why some of them harbour issues and resentment.  All this information is all out there, if one wishes to investigate.

The rand sliding is the Rothschild cartel playing their usual game. If you haven't noticed yet, there are no markets but them.

JohnGaltUk To Hell In A H… Tue, 02/13/2018 - 08:28 Permalink

Yeah I hear what you are saying but they are backed by nukes and can reach anyone's arse on the globe.

Osama never had a history channel so he didn't know that. Would have saved his life if he had watched the History Channel instead of porn.

Ease up on the Rothschild Family, everyone knows its just folklore these days. Governments have moved in on their operations many years back now.

In reply to by To Hell In A H…

To Hell In A H… InnVestuhrr Tue, 02/13/2018 - 09:57 Permalink

Do you understand in layman terms what $80 trillion in unfunded liabilities represents? I thought not.

Can Uncle Scam pay back $21 trillion in debt, even if we ignored interest payments. I thought not.

I know this website was once a financial/economics website and you should remember that when you visit here. This aspect of ZH, is almost lost. 

For you to say the USSA is generations away from bankrupt, shows the level of IQ infesting this website. The Federal Reserve places some digits on an electronic ledger and the rest of the world still accepts it. This does not alter the fact the USSA is bankrupt.

Banks still lent money to Lehman's and Enron. 2 weeks before their collapse. It did not mean Lehman's and Enron were not effectively bankrupt years before. Just look at Carillion in the UK. If the banks had lent them the £1.5 billion they asked for, they would not be insolvent today, but just another functioning company to the average outsider. 

The USSA is bankrupt. I know this truth hurts the pride of people like you. I understand, but don't lie to yourself and please understand economics and a semblance of monetary policy and history before commenting. 

 

In reply to by InnVestuhrr

TheObsoleteMan To Hell In A H… Tue, 02/13/2018 - 11:37 Permalink

The US government is bankrupt, but not the states, corporations and individuals {well, some of them are} of the country itself.  Normally, the government would just dissolve, bust the treasury and a new government would be installed. There would be some pain, but only to those who rely on the government for it's programs {the old would be fucked}. But that is not what would happen. Once the Federal government can no longer service it's debt {sell bonds}, it will force you to buy the bonds {bail-ins}. If necessary, the Feds will STEAL YOUR ASSETS. Whatever it takes to keep them in power. Just imagine 100% of your wealth being forcibly locked up into junk bonds {US T-bills}THAT YOU CAN'T SELL, AND THEY HAVE NEGATIVE INTEREST RATES. That is the real threat of US government bankruptcy. That is also when they roll out the cashless society {which is coming anyway, and could arrive first}. Everybody will get a new US Government ID card to replace your old Social Security card, except the new "card" is a chip that is implanted in your hand or forehead.

In reply to by To Hell In A H…

William Dorritt To Hell In A H… Tue, 02/13/2018 - 09:41 Permalink

The true wealth of any country is it's citizens

US average IQ is what 100

SA is what 80 ?

 

Obama and the current congress have done their best to turn the US into a shit hole, hopefully Trump will be able to reverse it even if it means Nuremberg Courts since the FBI and DOJ credibility is approaching zero with all of the SJW fanatics who were infiltrated into the govt over the past 8 years.

In reply to by To Hell In A H…

Ace006 To Hell In A H… Wed, 02/14/2018 - 00:29 Permalink

Turning much more of the land and the mines to the blacks would have what result do you think? Exactly? It would be like giving your 13yo the checks for your bank account. There was no reason for whites to surrender everything they'd built. S. Africa was full of empty space when whites arrived so what claim did blacks gave? On top of which, the Bantu were themselves invaders from central Africa. Whites are supposed to care that blacks have some illogical grievance?

Watch video of the last meeting of the ANC when the new party leader, I think, was elected. It was "comrade" this and "comrade" that. This will end well....

In reply to by To Hell In A H…

JoeTurner Tue, 02/13/2018 - 08:21 Permalink

Wakanda is on the verge of a new space program ! just need to figure out how to get enough drinking water to Capetown before the city implodes...

Atalanta Tue, 02/13/2018 - 08:40 Permalink

Mining gold and other stuff is the backbone of a Rand. Russia, China, spending billions to get so much as possible. 

Any change in leadership of Zuma will trickle down to the lowest ranks of civil service. Expect a booming S.A. Thousands of new servants will lining up for new cars and housing. The old will retire to Dubai and other places to rest, and enjoy life, again. From hard days work of struggle.

To Hell In A H… Unreconstructe… Tue, 02/13/2018 - 09:41 Permalink

Such hubris Cecil Rhodes had, he named a country after himself. When the French lost French Guinea and nothing had changed but leadership, with no polices enacted, why did their currency lose 70% of its value within 2 weeks? Monetary policy? Stop being so fucking stupid and blind.

The west is bankrupt and bust by our own definition, in a set of rules we invented, we also change the rules when it suits us and force everybody else to play by. We were unofficially broke when Nixon came of the gold standard, but the petrodollar scam kept the game going for overtime. Now we have resorted to good old fashioned money printing to sustain us, but we've just given it a fancy name called "Quantitative Easing" 

If the markets were real and not rigged to the heavens, our money would be worth less than the Wiemar Republic. These realities people like you simply ignore for a twisted narrative. Crawl back to your cave and leave reasoned debated for those who wish to have it. People in glass houses should not throw stones. Haven't you got the memo that FOREX and LIBOR was and is still rigged. If it wasn't still rigged to favour us, the bottom would have fallen out of the dollar, the British pound and the EURO years ago 

The dollar is living in fantasy land, where unicorns live in rainbow fluffy clouds. No westerner is in any moral position to talk about, or lecture Venezuela, or any African nation regarding currency valuation. In fact we should be apologising. Many of the comments castigating South Africa, that is the equivalent of Charles Manson calling Ted Bundy a murderer, while taking the moral high-ground. Our money is dead, we just pretend its not, while damning others who do not even 1/50th of what we do.

In reply to by Unreconstructe…