Rand hits R18 to the dollar

[Ockie]

Lets hope it continues. I remember when it was R8.00

With the gains though, lets hope our prices in the shops etc see the benefit.

 

[Ockie]

Guys, just a hypothetical question. Lets say in a years time the Rand strengthened to R10.00 to the $. And our prices for goods and services comes down.

1. What happens to salaries? Companies will get less money for goods and services provided due to prices coming down
2. If your salary comes down...what about your bond on your house or your rental agreement?

It almost seems like it could cause chaos in its own way.

 

[Vorastra]

Guys, just a hypothetical question. Lets say in a years time the Rand strengthened to R10.00 to the $. And our prices for goods and services comes down.

1. What happens to salaries? Companies will get less money for goods and services provided due to prices coming down
2. If your salary comes down...what about your bond on your house or your rental agreement?

It almost seems like it could cause chaos in its own way.

You've just realised the dangers of rapid deflation.

 

[Lupus]

Guys, just a hypothetical question. Lets say in a years time the Rand strengthened to R10.00 to the $. And our prices for goods and services comes down.

1. What happens to salaries? Companies will get less money for goods and services provided due to prices coming down
2. If your salary comes down...what about your bond on your house or your rental agreement?

It almost seems like it could cause chaos in its own way.

Should actually bolster salaries as now more goods can be purchased rather than less. Perhaps in industries where the exports were heavily based on the exchange rate they might take a bit of a knock, but the benefits of imports being cheaper might also help sway that.
Big enterprises could spend a million on a server farm instead of 1.8, how would that not benefit them?

 

[Quicks]

I remember when it was R6 to the US Dollar.

The good old days when we didn't have the government "ANC" destroying everything.

 

[Lupus]

The good old days when we didn't have the government "ANC" destroying everything.

20 years ago?

 

[Quicks]

20 years ago?

Has it been that long ago? But yes the first 10 years the ANC probably did less destruction. They certainly put it in overdrive last 2 decades.

 

[Lupus]

Has it been that long ago? But yes the first 10 years the ANC probably did less destruction. They certainly put it in overdrive last 2 decades.

Yup sadly

 

[SauRoNZA]

Guys, just a hypothetical question. Lets say in a years time the Rand strengthened to R10.00 to the $. And our prices for goods and services comes down.

1. What happens to salaries? Companies will get less money for goods and services provided due to prices coming down
2. If your salary comes down...what about your bond on your house or your rental agreement?

It almost seems like it could cause chaos in its own way.

1. Companies don’t get less money. Their cost basis decreases as well.

2. Your salary can’t come down. Interest rates should become lower so those should adapt accordingly. Good luck getting someone to lower your rent though.

 

[Rickster]

Let's see how long it takes before someone from the ANC says something stupid or X thing happens and then BAM, back to R19 it goes.

 

[VooDooC]

20 years ago?

13 years ago the Rand was at R6.58 to the Dollar and R10.57 to the Pound... We'll probably never again see those kind of rates, at least not in our life times.

 

[UB40]

In other news, former renowned economist Dawie Roodt looking for a job.

Dawie the naaier and @epah have eloped to an African country somewhere. Good riddance Just kidding

 

[UB40]

I remember when it was R6 to the US Dollar.

You also remember Paul Kruger driving you to school on the school bus as well

 

[Lupus]

13 years ago the Rand was at R6.58 to the Dollar and R10.57 to the Pound... We'll probably never again see those kind of rates, at least not in our life times.

Close, yeah

 

[Lupus]

You also remember Paul Kruger driving you to school on the school bus as well

I can remember when it was R2

 

[UB40]

I can remember when it was R2

@Geoff.D wasn't even born yet

 

[Lupus]

@Geoff.D wasn't even born yet

He remembers when it was the pound still, plus when it was $2 to the R

 

[DStvNothingOn]

Those rates are probably out of reach, but If things can keep on track I don't think R15.50 - R16.50/$ is unrealistic

13 years ago the Rand was at R6.58 to the Dollar and R10.57 to the Pound... We'll probably never again see those kind of rates, at least not in our life times.

 

[Roo!]

I can remember when it was R2

I remember when it was R1 = $1 and R2 = £1

 

[Jam Sandwich]

Wake me up when it hits R17...