Cape Town – President Jacob Zuma said he made the correct decision to replace Nhlanhla Nene as finance minister, saying the markets overreacted and people exaggerated the situation.

The rand plunged to a historical low of R16/$ when Zuma made ANC backbencher David van Rooyen the new minister. January has seen the rand hit even new lows, mostly because of market woes in China. On Sunday night it was sitting at R16.24/$.



He was allegedly persuaded by his senior leadership and the banking sector of the South Africa to find a speedy solution to avoid a total collapse of the economy, which he did by reappointing Pravin Gordhan to his old post.