The resignation of Finance Minister Trevor Manuel has caused confusion and volatility in the country's markets, T-Sec economist Mike Schussler said on Tuesday.

"He resigns and then in the next hour he says he may be prepared to stay on. He should have announced his situation upfront -- now people in the market are really confused."

As a consequence, there had been tremendous pressure on the rand, he said. "It bounced back but now it's gone backwards again."

At 2.33pm the local currency was trading at 8.14 to the US dollar, Schussler said.

He added that the resignation and the subsequent announcement that Manuel may be prepared to stay on had scared both local and foreign investors.

"No one knows what the markets will do in the next few hours," Schussler said.

Earlier it was announced that Manuel was among 11 Cabinet ministers and three deputy ministers who had resigned.

Their letters of resignation had been received by President Thabo Mbeki "which, regretfully, he has had to accept", the presidency said.

Later, however, Manuel's spokeswoman Thoraya Pandy said that both he and his Deputy Minister Jabu Moleketi were "ready to serve" a new administration.