South African state prosecutor drops fraud charges against Gordhan

South Africa’s state prosecutor dropped fraud charges on Monday against Finance Minister Pravin Gordhan, the latest twist in a police investigation that has rattled financial markets in the continent’s most industrialised economy.

Worries that Gordhan could be prosecuted or even removed from his job have also increased the risk that credit rating agencies would downgrade South Africa to “junk” status, undermining efforts to revive economic growth.

The rand gained as much as 1.6 percent against the dollar, while bonds firmed as the head of the prosecution service, Shaun Abrahams, read his decision.