Patriotic Alliance President Gayton McKenzie, has made a startling claim that the Democratic Alliance (DA) is using the South African rand as a bargaining chip in the Government of National Unity (GNU) negotiations against the African National Congress (ANC) and other GNU Parties
Investors are interested in who will run the show and make the policy that will make it easier or more difficult to do business in South Africa.
The Rand exchange rate appreciated by more than 2% against the dollar, euro and pound from last Thursday. She says the Rand closed at below R18/$ for the first time this year on Wednesday but pulled back a little on Thursday.After reaching an intraday high on Wednesday, the JSE ALSI also lost some of its gains on Thursday but still closed almost 5% higher.
According to McKenzie, the DA is relying on its “strongest ally”, the rand, to exert pressure and gain an advantage in the negotiations. This statement suggests that the DA is using the currency’s value as a means to influence the outcome of the talks.
McKenzie’s assertion has sparked interest and concern, as the implications of such a strategy could have significant effects on the country’s political and economic landscape.
