Sacking of South African finance minister sends rand to 1971 lows

South Africa’s president on Wednesday evening fired the country’s finance minister, Nhlanhla Nene, a decision that weighed on financial assets from the country, including shares of London-listed Old Mutual and Investec.

The unexpected decision by Jacob Zuma sent the South African rand sharply lower versus the US dollar.

As of 08:07 the greenback was 0.53% stronger versus the rand at 15.052, which was near its lowest level since 1971.

Nene was replaced by David van Rooyen, whom some reports described a little-known backbencher with no previous experience in finance.

One report linked Nene’s defenestration to his ministry’s opposition to the president’s plans for an approximately $100bn deal to purchase eight nuclear reactors from the Russian Federation and question marks surrounding deals at state-owned airline SAA.

“I have decided to remove Mr. Nhlanhla Nene as Minister of Finance, ahead of his deployment to another strategic position,” Zuma said in a statement.

“Mr. Nene has done well since his appointment as Minister of Finance during a difficult economic climate. Mr. Nene enjoys a lot of respect in the sector locally and abroad, having also served as a Deputy Minister of Finance previously.”