The South African rand fell 5 percent overnight on Thursday, after Prime Minister Jacob Zuma sacked finance minister Pravin Gordhan in a dramatic cabinet reshuffle.
The move provoked criticism from the country, with Gordhan having been seen as a trustworthy figure in an increasingly controversial government.
Gordhan was one of eight cabinet ministers to be sacked on Thursday night, in what President Zuma called a “radical socio-economic transformation”. In a statement, he said:
“I have directed the new ministers and deputy ministers to work tirelessly with their colleagues… to ensure that the promise of a better life for the poor and the working class becomes a reality.”
However, many have argued that Zuma has replaced strong political opponents with loyal supporters. Gordhan had previously stood up to Zuma and warned the public of “rampant corruption” in the government. His replacement has little economic experience, but is known to be a strong supporter of Zuma’s policies.
The South African rand dropped sharply on news of the reshuffle but has since slightly recovered. It is now up 0.505 percent against both the dollar and the euro.