Two Resignations and a Funeral
Today, we open with heartfelt condolences to the family of Morgan Tsvangirai. We take cues from President Emmerson Mnangagwa in lauding his contribution to Zimbabwe. May he rest in peace.
We were hoping for a more upbeat week after Sterling's poor run last week's poor run. We'll be the first to let you know when that particular prayer is answered.
Finally, this post wouldn't be complete without mentioning the resignation of two Heads of State on the African continent - one from South Africa and the other from Ethiopia. The former made headlines worldwide, the other was barely a footnote. (And to be honest, the only reason, the Heritage Pay team know this is because we are paid to!)
After weeks of resignation near-misses, will-he-won't-he, innuendo and speculation; South African President, Jacob Zuma finally resigned this week - to loud cheers, singing and dancing in Parliament. The markets too were unanimous in their approval. The Rand touched a near 8-month high against Sterling and the Euro; and a 3-year high against the Dollar. (At this point, it is worth noting that the US Dollar Index - which measures the Dollar's performance against a basket of currencies - touched a 3-year low earlier today.)
The response from the JSE All Share Index was a resounding gain of nearly 6% on the week's trading. However, by close of play today, the market had pared back a small fraction of those gains. See you next week! To discuss how the above may affect you, please contact your Currency Dealer at Heritage Pay on +44 (0) 203 858 7274.