South Africans vote today in most-competitive election since apartheid

The South African rand is in focus today as the nation holds a national election that could bring a change unseen in 30 years.

The ANC has held a majority in parliament since apartheid ended 30 years ago but that could change today. The party is polling in the mid-40% range in the country’s proportional representation system.

In the previous election, the party won 57.5% but it’s likely to fall below half this time and that will lead to some kind of power-sharing agreement in the 400-seat parliament.

The polls close in about 4 hours at 1700 GMT and results are expected to start trickling in within hours of that.

Barring a big surprise, I wouldn’t expect a significant move in the rand. The rule of thumb is that currencies get a relief rally after elections, especially in emerging markets. Yes, there will be some change but the status quo will continue to dominate. Hopefully they can restore the power grid in this five-year term.

This article was written by Adam Button at www.forexlive.com.