Rand hits R18 to the dollar

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


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