The rand has not strengthened, its the dollar that's weakened. As the dollar weakens, the price of gold and oil must increase in order to keep their value, as they are quoted in dollars.
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Rand hits 13 month high vs $
- Thread starter The_Pumpkin_King
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The rand has not strengthened, its the dollar that's weakened. As the dollar weakens, the price of gold and oil must increase in order to keep their value, as they are quoted in dollars.
The Economist
Active Member
Peter why then has the rand in previous years been as low as 5.50 to the dollar with no world cup?
I do not buy this whole world cup thing. I think the dollar is weak and is making the rand look good.
The South African Reserve Bank moved from a managed float exchange rate to inflation targeting. With market forces involved, the Rand devalued to its equilibrium price (R7-9).
PeterCH isn't completely wrong. With the WC coming up, the Rand will be more demanded, and therefore the value will increase ie. appreciation.
However, weaker dollar and high prices for goods which we export has given factors for an increase in value of the Rand.
Peter you do sarcasm very poorly, lack ofor
or even
I'm sorry I didn't realise we had people of low IQ on the forum.....that's how I post. I mix with educated people IRL who don't need to be told "I'm now being sarcastic", so if you don't understand - not my problem.
The problem with SA is that most of the industry here is service - and it's service to the locals. Just drive through say Century City - what do you see - VodaCom, Discovery, MTN, Mercedes Benz, etc - all outfits which service locals and don't pull in reserves from abroad.
SA does not have lots of educated people either. Our workforce is inefficient and very unionised. So outside of gold (and similar) and the WC I don't see us as having a good outlook. It's not like we will become another China and manufacture goods and its not like we can become Europe/US and innovate and/or develop ideas for China to manufacture.
killadoob
Honorary Master
Ya but peter everytime you are sarcastic you have to point it out to people LOL
So normally you can tell when someone is sarcastic but with you nobody can, i was just trying to be helpful but carry on mixing with your high IQ peeps who do not know when you are being sarcastic
and then keep explaining to people when are .killadoob
Honorary Master
I was being sarcasticnobody realizes i am being sarcastic because i fail to use
Mind you the world economy is picking up and the oil price is rising too.
Thought i would post and show you what i mean, this is one of many
d0b33
Honorary Master
Peter does not have a high IQ, that's a myth.
He has a higher IQ than you. from what I've gathered over time
d0b33
Honorary Master
Coming from a Kanye West fan I'm guessing not much.
I've never claimed to have a high IQ anyway so really does not matter.
I was just joking about the Kanye West though
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hj2k_x
Honorary Master
So is the consensus that the rand will continue to strengthen against the other currencies up to the WC or will it plateau and revert to previous levels of 8-9/$ and 13-14/pound?
Tough to predict.. depends on how the US plays with China who basically have them by the balls. Also China has and is still on a spending spree of note, i think they just bought an oil field dev somewhere the other day.
Problem with SA is we don't manufacture / sell on a large scale and our exports are like agriculture & mining predominately. The gov has pointed this out a few times in past reports and while they still push to increase e.g. the number of science and engineering graduates it doesn't exactly help that other industries like e.g. banking is kept artificially high and often recruits these guys as well. And i haven't even mention education system failures, basically SA is a 3rd world country with 1st world problems service orientation problems.
I wonder why there's never been any oil found in Sa btw.
Problem with SA is we don't manufacture / sell on a large scale and our exports are like agriculture & mining predominately. The gov has pointed this out a few times in past reports and while they still push to increase e.g. the number of science and engineering graduates it doesn't exactly help that other industries like e.g. banking is kept artificially high and often recruits these guys as well. And i haven't even mention education system failures, basically SA is a 3rd world country with 1st world problems service orientation problems.
I wonder why there's never been any oil found in Sa btw.