After Cyril Ramaphosa was confirmed as the new president of the ANC, the rand firmed by almost 4% against the US dollar to R12.55.
Chief Economist at Nedbank, Dennis Dykes says after the divided top six, they where back up again and closed at about 12.75 against the dollar.
However, he says this is still better than the past few week, which shows there is still a bit of optimism.
The fact that we've got this divided top body of the ANC with more that one top suspect characters will definitely play on the markets mind and largely because it will be difficult for Cyril Ramaphosa to make some tough, big decisions to get the economy moving again.— Dennis Dykes, Chief Economist at Nedbank
Dykes thinks if Ramaphosa get the right ministers in place, he might stand a chance to get things done and to grow the economy.
The nuance becomes very important and if he had the right ministers in place, he'd get very quick action and move the economy to a growth path which is better than the current one.— Dennis Dykes, Chief Economist at Nedbank
To hear more of this economy analysis by Dennis Dykes, listen below: