The ZAR Exchange Rate Thread

theratman

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if the rand gets strong we are buggered,the clothing industry relies almost solely on exports and thats a small percentage of the economy..theyv been shutting down because of a stronger rand...im happy with a r/d exchange above 7..
 
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DJ...

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if the rand gets strong we are buggered,the clothing industry relies almost solely on imports and thats a small percentage of the economy..theyv been shutting down because of a stronger rand...im happy with a r/d exchange above 7..
So you are happy with a weaker economy to ensure that you can shop at Edgars??????
 

milomak

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A weaker rand (provided it does so in an orderly manner) would be good for the country on the whole.
 

theratman

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A weaker rand (provided it does so in an orderly manner) would be good for the country on the whole.
correct,a weaker rand is better on the whole,due us being a big exporter,importing loads of cheap chinese crap is very bad for the economy..i know that the gvt tries to keep the rand weaker by cutting the repo rate to strenghen domesitc demand etc...

For exports....yes, But for imports?? a deff NO
a weaker rand aint great for imports but we make more money exporting than importing products to be sold domesticly,except textiles,the amount of textiles being imported is killing the industry
 
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milomak

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correct,a weaker rand is better on the whole,due us being a big exporter,importing loads of cheap chinese crap is very bad for the economy..i know that the gvt tries to keep the rand weaker by cutting the repo rate to strenghen domesitc demand etc...
keeps on trying? you realise that the last time the SARB cut rates was in April 2005
 

theratman

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i do remember that,mister trevor manuel came to our economics class after the rate was cut for a Q&A session
 

Syndyre

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correct,a weaker rand is better on the whole,due us being a big exporter,importing loads of cheap chinese crap is very bad for the economy..i know that the gvt tries to keep the rand weaker by cutting the repo rate to strenghen domesitc demand etc...



a weaker rand aint great for imports but we make more money exporting than importing products to be sold domesticly,except textiles,the amount of textiles being imported is killing the industry
The textiles industry globally outside of Asia is being decimated so that's not unique to SA. The Reserve Bank's official mandate is inflation targeting and protecting the value of the currency which doesn't cover weakening the rand. If SA wants to become competitive then we need to sort out problems like Eskom, low productivity etc. not weaken the currency.
 

theratman

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The textiles industry globally outside of Asia is being decimated so that's not unique to SA. The Reserve Bank's official mandate is inflation targeting and protecting the value of the currency which doesn't cover weakening the rand. If SA wants to become competitive then we need to sort out problems like Eskom, low productivity etc. not weaken the currency.

yes but a weaker currency is best for the country atm,tourism is also a big industry here and a strong rand will discourage tourists..
 

milomak

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The US still maintains they favour a strong dollar policy and look what the dollar has done over the last couple of years. Protecting the value of the currency can be best served by allowing it to weaken.
 

theratman

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The US still maintains they favour a strong dollar policy and look what the dollar has done over the last couple of years. Protecting the value of the currency can be best served by allowing it to weaken.
ecos 101 :D
 

Syndyre

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The US still maintains they favour a strong dollar policy and look what the dollar has done over the last couple of years. Protecting the value of the currency can be best served by allowing it to weaken.
Sure but I don't think anyone wants to see R13/dollar again, especially with high global commodity prices, particularly oil, it wouldn't help SA much. Especially since Eskom needs to import equipment for its expansion.
 

theratman

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Sure but I don't think anyone wants to see R13/dollar again, especially with high global commodity prices, particularly oil, it wouldn't help SA much. Especially since Eskom needs to import equipment for its expansion.

yeah,thats too extreme..a really weak rand is not good,i think the rand is fine in the range of 7-8 to the dollar,but thats just the economist in me :D
 

Syndyre

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yeah,thats too extreme..a really weak rand is not good,i think the rand is fine in the range of 7-8 to the dollar,but thats just the economist in me :D
Not far from where it is now then. I think the issue at the moment's more dollar weakness than rand strength, its been dropping against almost all major currencies.
 

theratman

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Not far from where it is now then. I think the issue at the moment's more dollar weakness than rand strength, its been dropping against almost all major currencies.

the dollar weakening is a concern...wonder what country theyl invade next..iraq isnt bringing them enough money:D
 

theratman

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hehe,they are so buggered in iraq already,iran will be a slaughter,iranians are hardcore compared to iraqis
 

milomak

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i don't think is talking R13 to the dollar when they say a weaker rand would be good for the economy.
 

noxibox

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A weaker rand can easily lead to higher inflation and higher wage demands which could then offset any pricing advantage.
 
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