- The rand has gone into a dive after a late night announcement by President Ramaphosa that the ANC would seek to change the Constitution
- The local currency had before the announcement been making steady if incremental gains and was trading at R13.08 against the dollar before the announcement
- By 10 am on Wednesday the currency was trading at R13.27 and showed signs of continuing its downward plunge
The rand has taken a dive after the late night announcement by President Cyril Ramaphosa that the African National Congress (ANC) would seek to amend the Constitution to allow for land expropriation without compensation.
The local currency had been on course to make steady if somewhat incremental gains against the US dollar in recent weeks and was trading at around R13.08 before the speech. The rand bottomed out at R13.39 an hour after the speech.
These figures were reported by BusinessLive.co.za and according to the publication by 10 am on Wednesday morning, the local currency had regained some of the ground it lost and was trading at R13.27 but has shown signs of continued weakness.
Briefly.co.za gathered that economists said the late night announcement was yet more proof that politicians were the single most dangerous factor to the struggling economy.
The rand was moving towards breaking the R12 to the dollar barrier before the announcement but is unlikely to recover to anywhere near that level for the foreseeable future.
BusinessLive.co.za reported that economist Wichard Cilliers slammed the late night announcement as clear political gamesmanship on behalf of the ANC. He said it was nothing more than a political tactic to negate the message of the EFF ahead of the 2019 general election.
Briefly.co.za reported earlier that the ANC had announced it would seek to amend the constitution, the announcement came as a surprise because the process of hearings into the matter are still ongoing.
Cilliers said the impact of the announcement was immediate and pretty serious. He added that unless the ANC communicated its proposal in clear and understandable language the rand could go into freefall as foreign investors turn away due to uncertainty.
The weakening of the rand almost guarantees that the already record-high fuel prices being experienced in South Africa will continue to climb, this will not only impact people with cars or those reliant on public transport but will almost certainly impact food prices.
For more amazing, funny and informative videos, please visit Briefly South Africa's YouTube Channel.
Do you have a story to share with Briefly? Visit our Facebook page where you can send us a message or leave us a comment. Your story could be shared online.
To stay up to date with the latest news, download our news app on iTunes or GooglePlay today.