Besides the rand falling against major currencies, the banking sector has already suffered an R86 billion loss on the news of the controversial cabinet reshuffle.
Banks listed on the Johannesburg Stock Exchange have been hit hard.
FirstRand was hit the hardest after its share price fell by a mighty 12%. This represents about R33 billion in its market trading.
Standard Bank’s shares fell by 9.2%, Rand Merchant 7.9%, the Barclays group by 7.6%, Nedbank 6.8%, and Capitec 5.4%.
The banking index on the stock exchange fell by a total by 7.7%.
It is clear that confidence is declining at a breathtaking pace, and that the economy will be hit hard by Zuma’s action.
Although petrol and diesel prices will show a slight decrease next week, the sharp depreciation of the rand means the consumer will definitely be hit hard next month, as fuel prices will definitely see a significant increase because of these actions.
The rand weakened to R13,4345 to the dollar and to R14,3379 against the euro.
Read the original article in Afrikaans on Die Vryburger
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