Moving money abroad

[Priapus]

Okay, someone educate me a little if you will, please. What is the point of moving money out of the country to an offshore account? The Rand is weak and a lot of Rands makes for not so much 1st world currency.

 

[The_Ogre]

Okay, someone educate me a little if you will, please. What is the point of moving money out of the country to an offshore account? The Rand is weak and a lot of Rands makes for not so much 1st world currency.

Our fear is that it will just get weaker - think Zimbabwe.

Currently it costs R12.2581 to buy a Dollar. Five years from now when Malema is president it might cost R500 per dollar.

So, today it will cost your R12 2581 for a $1 000. If you were to bring that same $1 000 back over in five years' time, it will be worth R500 000.

Hope that helps.

 

[Priapus]

Our fear is that it will just get weaker - think Zimbabwe.

Currently it costs R12.2581 to buy a Dollar. Five years from now when Malema is president it might cost R500 per dollar.

So, today it will cost your R12 2581 for a $1 000. If you were to bring that same $1 000 back over in five years' time, it will be worth R500 000.

Hope that helps.

So it's a basic for of investment with minimal risk. If the Dollar weakens, your money probably won't be less than the original investment. If it strengthens, win.
How do I start looking into this? It makes a lot of sense to move the money out of the country.

Thanks for the info.

 

[Priapus]

Just a small update for those interested.

Subsequent to this thread I opened a Neteller account, with the Euro as base currency. Every month I move a couple of hundred Euros into it.

You also have the option of requesting a Neteller card which is underwritten by MasterCard so you can use it wherever MasterCard is accepted. It offers free POS purcheses, but ATM withdrawals are €3 and that's enough of a deterrent not to withdraw cash with it. That being said, I haven't ordered a card yet.

Did you choose the Euro due to it not being as strong as Pound and yet still stronger than the Dollar?