South African opposition political party demands a countrywide shutdown.

Amid an energy and economic crisis the Economic Freedom Fighters (the EFF), the third biggest political party have demanded that there be a nationwide shutdown until the current sitting President Cyril Ramaphosa steps down to take responsibility for the current state of the country. This shutdown is set to happen today, how should South African traders who trade the USDZAR prepare for the coming day？

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Who is Julius Malema？

The EFF is one of the biggest opposition parties in South Africa that is heavily against the rule of the current sitting President. Julius Malema serves as its current leader and it is he who announced the plans for a national shutdown today in South Africa. This means South Africans are expected to halt all public activity today and partake in the country-wide protest against the sitting President.

Julius, along with his political party, pin Cyril Ramaphosa as the political leader who has brought the country to ruin. Inflation is at record highs, the country is knee-deep in constant load shedding, and the countrys credit rating is not looking so good. The EFF believes that the ANC( the current sitting political party) should adhere to their demands and have the president impeached.

The ANC is however strong in their resolve to not impeach hence the president himself has called for the use of the national police force to govern the protest proceeding of today. The current sitting government does not want to see the national shutdown devolve into looting and violence hence a strong police presence is expected throughout the country.

How should we prepare as traders

If the shutdown does occur in great magnitude we should expect the ZAR to be negatively impacted. The shutdown means that the economy will be placed in a temporary halt in activity and also does not look attractive to investors hence we should expect the USDZAR to continue rising drastically today. I recommend you use good risk management when trading the ZAR as volatility may cause the price to Zigzag, however, expect to go long.