Rand Whipsaws as South Africa Budget Talks Come Down to the Wire

Rand volatility surged as the leaders of South Africa’s two main political parties continued negotiations to resolve a dispute over the national budget.

The split between the African National Congress and the Democratic Alliance over Finance Minister Enoch Godongwana’s spending plan has raised investor anxiety about a potential fracture in the ruling alliance. They’re concerned that a collapse of the current administration risks opening the way for the ANC to seek support from leftist parties such as the populist Economic Freedom Fighters to continue governing.