JOHANNESBURG (Reuters) – The South African rand fell in choppy trade on Tuesday as comments from the unity government’s two largest parties suggested a government announcement by President Cyril Ramaphosa was nearing.
The currency fell about 0.3 percent to 18.16 to the dollar by 1220 GMT, adding to its losses from the previous day.
Financial markets have been very nervous about what Ramaphosa’s new government will look like, as it will give a good indication of how the ANC intends to share power with its biggest rival, the Democratic Alliance.
Ten political parties joined the unity government after the African National Congress lost its parliamentary majority in the elections that took place last month for the first time since the end of the apartheid regime three decades ago.
Asked if a Cabinet announcement was imminent, Helen Zille, a senior member of the DNC’s negotiating team, told Reuters on Tuesday: “I think you could hear something in the next 24 hours.”
An ANC spokesman said the party had given the communications team a time frame of approximately 24 to 36 hours to announce the government.
Ramaphosa’s spokesman declined to comment on the timeframes given by the Democratic Congress and the ANC.
Local media, including news website News24, had previously reported that negotiations between the ANC and the DA were progressing and that an agreement could be reached allowing Ramaphosa to declare his executive position by Wednesday.
Commerzbank (ETR:) analysts said investors are focusing on how many ministerial positions the pro-business agenda will get.
“The more the better (for markets),” they said in a research note.
On the Johannesburg Stock Exchange, the 40 leading stock index fell by about 0.7%. Benchmark 2030 government bonds were stronger, with the yield falling 5 basis points to 9.805%.