South African Reserve Bank Governor Lesetja Kganyago says political risk is now being reflected in South Africa's 'weaker' exchange rate.
Speaking at the South African Chamber of Commerce (Sacci) Annual Conference in Kempton Park, Kganyago says the country is under threat of a credit ratings downgrade.
EWN reporter at the conference, Victor Magwedze, reports the Governor said the events that have heightened the perception that there is political volatility in country are not good for the economy.
He also says that it is important for leaders to resist the temptation to undermine the country's top institutions like the banking system, Chapter nine institutions and Reserve Bank.— Victor Magwedze, EWN reporter
Ours is a young democracy but a resilient one that has gone through worse.— Victor Magwedze, EWN reporter
Concerns of a possible downgrade came after National Prosecuting Authority's (NPA) decision to charge Finance Minister Pravin Gordhan with fraud.
Listen to Victor Magwedze to hear more about the conference...
This article first appeared on 702 : SA under downgrade threat due to 'political volatility' - Reserve Bank Governor