my values look a bit different, but use end of week averages
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Rand vs the dollar in 2012
- Thread starter rpm
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my values look a bit different, but use end of week averages
Cage Rattler
Expert Member
Basically correct, except it is for the last 10 years ie. since 1 December 2002.
What's the point of the normalised graph? If you had used 2008 as a base year, the trends would look rather different.
Why not just show the rand cost of the currencies - much more meaningful to me...
Why not just show the rand cost of the currencies - much more meaningful to me...
you are correct in the sense that your starting point would a have a big influence on what the graph will look like - I however often normalise data in order to get a quicker grip on the relative movements between different data series over a fixed period, such as calendar years
Our economy is hanging by a proverbial thread. In previous years the Rand has lost ground due to the international financial chaos and have managed to claw some its way back as our economy justified a stronger currency. This has however changed. Our economy no longer demand a stronger currency due to the lack of confidence both from foreigners as well as locals.
Foreign investments are way down, large asset purchases by locals (capital expenditure by local firms) are down. Ratings agencies have downgraded a large number of industries and companies as well as the country as a whole and there is not even a glimmer of hope of an upside adjustment in those ratings. Our national debt is on the increase at an alarming rate and the rate at which this debt is made is also increasing due to the lower ratings we have. A weaker currency and higher rates is compounding the alarming increase in debt levels.
Add to this that we are a welfare state where 2% of the population pay tax and over 50% receive grants and or social welfare.....
As said, there is no reason for the Rand to strengthen, our economy does not justify a stronger currency. There is no reason to risk investing in this country unless the government can show that it is worthwhile to invest here. Personally I think the Rand will weaken further and will not be surprised to see it cross the R9.00 level.
Foreign investments are way down, large asset purchases by locals (capital expenditure by local firms) are down. Ratings agencies have downgraded a large number of industries and companies as well as the country as a whole and there is not even a glimmer of hope of an upside adjustment in those ratings. Our national debt is on the increase at an alarming rate and the rate at which this debt is made is also increasing due to the lower ratings we have. A weaker currency and higher rates is compounding the alarming increase in debt levels.
Add to this that we are a welfare state where 2% of the population pay tax and over 50% receive grants and or social welfare.....
As said, there is no reason for the Rand to strengthen, our economy does not justify a stronger currency. There is no reason to risk investing in this country unless the government can show that it is worthwhile to invest here. Personally I think the Rand will weaken further and will not be surprised to see it cross the R9.00 level.
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Hell yeah. Ive invested in a country with a currency 6 times weaker than the rand. Its going to get cheaper for people to invest here
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