JOHANNESBURG - NEC’s secretary general Ace Magashule on Tuesday evening announced that the special ANC National Executive Committee (NEC) meeting that was scheduled for Wednesday has been cancelled.
The NEC was expected to meet to discuss the future of President Zuma’s future prior to the State of Nation Address (SONA), which has also been postponed.
The rand firmed against the dollar yesterday as the market positioned for the possible removal from office of President Jacob Zuma, while share prices hit a four-month low as the global stocks rout intensified.
At 5pm, the rand bid at R12.0277 to the dollar, 5.23c stronger than at the same time on Monday.
“Speculation about an imminent removal of President Zuma has intensified. His removal must surely now mostly be in the price but we would still expect a knee-jerk reaction when it transpires,” Rand Merchant Bank analyst John Cairns, said in a note.
NKC Africa Economics reports that the local currency, along with most other commodity currencies, clawed back some losses as US bond yields eased somewhat after hitting four-year highs on Monday amid a global sell-off in equities.
Richard Calland, and analyst at risk advisory company Pater Noster Group, told Bloomberg his view was that the postponement of the National Executive Committee meeting means the core issue around Zuma’s exit has been resolved and now the minor details are being ironed out.
Experts speculate that the world's eyes will be on South Africa and the outcome of today's meeting, and the rand should brace itself for a tumultuous rand reaction should an announcement be made today.
Magashule, in an apparent bid to stabalise markets and quell speculation told South Africans not to be anxious over the fate of President Jacob Zuma.
The postponed ANC NEC meeting is expected to be rescheduled for February 18 2018.
- BUSINESS REPORT ONLINE