As always, we spoke just a little too soon.

Last week, the rand hit a 20-month record high as it slowly crawled its way to a stronger rating against the dollar. Quietly, the nation celebrated, popping miniature bottles of champagne in clandestine settings to keep our happiness to ourselves just in case Number One overheard.

Well, unfortunately, it appears we weren’t hushed enough.

This morning, new speculation that Jacob Zuma could recall Pravin Gordhan and his deputy, Mcebisi Jonas, from their positions emerged as reports flowed in detailing the presidency’s contact with Gordhan and his delegation, instructing them to return home.

Gordhan and his posse are currently on an international roadshow and just hit the London leg. But now, with the orders to return home, the US leg of the roadshow has been cancelled.

While the presidency has remained mum on the situation, the rand has obviously been affected, tanking nearly 30 cents just this morning after a beautifully refreshing high, from R12.31 down to R12.66.

Fin24, who are updating the story as it goes, provided a heartbreaking graph to show what’s going on:

But why all the fuss? Analysts have previously predicted that Zuma will reshuffle the cabinet mid-March and the recall has only triggered these suspicions.

If Gordhan were to be removed from his post, South Africa would no doubt find itself in a deep financial mess.

As it stands, the rand has stabilised at around R12.60 – let’s just hope this is all a misunderstanding and we can carry on sipping that champagne until the rand finds its way to higher ground again.

[source:fin24]