South Africa’s rand hit a two-month low against the dollar and government bonds weakened sharply on Monday after a newspaper report, denied by the government, that Finance Minister Pravin Gordhan faces arrest. The report raised concerns of a repeat of the run on the rand and bonds in December after President Jacob Zuma changed finance ministers twice in a week just as South Africa tries to fend off a credit ratings downgrade.
Neither Gordhan nor the Treasury were available to comment.
South Africa’s Beeld newspaper, citing several sources it said were close to Gordhan, reported that he was aware of the plans to arrest him and would not be intimidated.
“If finance minister Gordhan is arrested, that would be a profound threat to the economic stability of South Africa,” South Africa’s opposition leader, Mmusi Maimane, said… MORE >>
