The African Christian Democratic Party (ACDP) has blamed laid the blame for the sharp fall of the nation’s currency on president Jacob Zuma.
The party, which had declared its shock over the volatility of the rand and its negative effect on the country’s imports such as food and oil, said it is willing to support the motion of lack of confidence on the president.
The ACDP MP and member of the Standing Committee on Finance‚ Steve Swart made the following statements:
“The ACDP is shocked at the extreme volatility of the rand‚ which plummeted to almost R18.00 to the dollar in Monday morning’s Asian trading‚
“While the rand has recovered to around R16.61 to the dollar‚ this weakness and extreme volatility is a matter of great concern‚”
Speaking further on the negative effect of the fall of the local currency, Steve Swart added it will definitely lead to inflation and likely interest rate hikes later this month which would on the other hand add pressure to hard-pressed consumers.
“While the rand is currently at the mercy of external factors‚ it is also not helpful that President Zuma on Sunday night stated that South Africans and the markets overreacted when he fired Finance Minister Nene last month‚ and that the effects of his decision were exaggerated.
“He must be held accountable for the reckless and illogical decision to fire Nene which not only caused the rand to weaken‚ but also caused significant losses on the equity and bond markets‚” Swart stated.
Aside the slump in platinum prices, one of the country’s largest exports, and other falling metal prices, South Africans have attributed its fall to the removal of well-respected former Finance Minister Nhlanhla Nene in December 2015 which in also damaged the credibility of the President.
Critics also asserted that Zuma’s decision have lead to a drastic increase in the country’s unemployment which invariably lead to an increase in crime and corruption. To this assertion, over 100,000 signatures have been appended on the petitions to have the president removed.