Goldman Sachs Says Rand Will Buckle If Pravin Gordhan Is Charged
South African Rand Caught in Turmoil of Split ANC
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South Africa’s credit rating would be cut and the rand would “buckle” if Finance Minister Pravin Gordhan is removed from his post, according to Goldman Sachs Group Inc.
The currency has slumped 6.2 percent since Aug. 23, when a news website reported that the Hawks police unit had summoned Gordhan in connection with an investigation into alleged irregularities at the tax-collection authority, which he headed from 1998 to 2009. Gordhan has refused to report to police, saying he has done nothing wrong. Opposition parties and some independent analysts have accused President Jacob Zuma, 74, of trying to gain greater control of the National Treasury, a claim he’s rejected.