The South African rand soars against the U.S. dollar, bond yields fall and banks shares rise as the parliament's speaker decides the no confidence vote on scandal-hit president Jacob Zuma will be hold through secret ballot. Silvia Antonioli reports.
Scuffles in Parliament... and protests in the streets... triggered by the many South Africans, politicians and civilians, who want President Jacob Zuma out of his job. Today he faces a confidence vote which could make that happen. after struggling to fend off accusations of corruption and mismanagement of the economy. In an unexpected turn, the parliament's speaker ruled that the vote will be held through a secret ballot, increasing the chances that the ANC leader might go and boosting domestic markets. SOUNDBITE (English) CRAIG ERLAM, SENIOR MARKETS ANALYST, OANDA Craig Erlam, Senior Markets Analysts, OANDA "He dissatisfies an awful lot of people. Corruption generally tends to be negative for the economy and we have seen signs that the economy has suffered as a result of all these corruption scandals. Should this ballot prove different because it's taking place in private, this would naturally be positive for the economy because hopefully you are ridding the country of this corruption." The rand surged against the dollar, bond yields fell and banking shares rose after the secret vote announcement. Once Africa's mightiest economy, South Africa slid into recession in March and was downgraded to "junk" status by two ratings agencies. Unemployment is stuck at a 14-year high of almost 28% And Zuma's sacking of respected finance minister Pravin Gordhan in March gained him more critics. SOUNDBITE (English) ECONOMIC FREEDOM FIGHTERS (EFF) LEADER, JULIUS MALEMA, SAYING: "Sitting in front of us here, is a man who is incorrigible. An incorrigible man. Rotten to the core." But the opposition may not necessarily get what they want. With the ANC holding more than half the seats in parliament Zuma can only be forced out if many of his own party break ranks.