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Rumors about the South Africa's Minister of Finance resignation has weakened the Rand

Rumors about the South Africa's Minister of Finance resignation has weakened the Rand

During today's trading the exchange rate of the South African Rand fell by 2% against the U.S. dollar. The South African currency weakening has occurred against the background of the rumors about the possible resignation of the Minister of Finance within the of the Cabinet of Ministers emerging reformation. Such speculation arose after the Finance Minister Pravin Gordhan was urgently recalled to South Africa during his meeting with investors in the USA and UK. After that the rumors, that the Prime Minister of South Africa Jacob Zuma is going to implement the Cabinet reorganization, had sprung. The assumption, that Gordhan will be the first candidate for dismissal, appeared on the basis of his disagreement with the Prime Minister, which has been continuing for several months. Earlier Zuma has repeatedly demanded from Gordhan to increase the expenditure and government loans to solve the poverty and racial inequality problems in South Africa. Such disagreements in the ruling circles of the country affect the stability of the South African currency.