The ZAR Exchange Rate Thread

[Lupus]

And suddenly we're at R15.30.

What is the reason?

Never mind
The announcement of the NHI didn't help, plus mining data is not good and of course Eskom. Viva ANC you opened your mouth and the currency just plummets

 

[JayM]

What is the reason?

Never mind
The announcement of the NHI didn't help, plus mining data is not good and of course Eskom. Viva ANC you opened your mouth and the currency just plummets

All the bad news is leading to accelerated capital flight.

 

[Lupus]

All the bad news is leading to accelerated capital flight.

Yup looks like it.
The funny thing is as usual the NHI was supposed to start in 2012
https://www.sowetanlive.co.za/news/2010-09-28-vat-for-nhi-would-affect-the-poor/
But that never happened.

 

[JayM]

Yup looks like it.
The funny thing is as usual the NHI was supposed to start in 2012
https://www.sowetanlive.co.za/news/2010-09-28-vat-for-nhi-would-affect-the-poor/
But that never happened.

The fact that the government is in lala land about what is affordable and what isn't is the problem. I think the markets are starting to price in a default. We're ****ed.

 

[Lupus]

The fact that the government is in lala land about what is affordable and what isn't is the problem. I think the markets are starting to price in a default. We're ****ed.

There's that plus the near junk status we are going to get again. I mean already expensive cars, electronics and everything will just get more expensive. The iPhone technically has just gone up R1000 in a week.

 

[John Tempus]

We have a lot of socialist "what-ifs-and-when" in the pipeline stacking up and it really is just blowing the top for international investments which will lead to the common trend of sudden exchange collapse.

Without trying to sound like a fear monger the exact same scenario played out in Zimbabwe however they had a much more fragile economy so it just affected them much quicker.

 

[Jings]

The R20 per dollar predicted for 2021 is closer to becoming a reality.

 

[Swa]

The world has finally realised SA is unsaveable. The only thing that was different in Zim was the quantitative easing which made everything collapse locally much faster.

 

[krycor]

The world has finally realised SA is unsaveable. The only thing that was different in Zim was the quantitative easing which made everything collapse locally much faster.

Disagree slightly.. I think we on the cliff and it’s the political squabbles that make things look unrecoverable.

The thing that keeps SA in the game is the disaster that’s happening abroad.

 

[John Tempus]

Disagree slightly.. I think we on the cliff and it’s the political squabbles that make things look unrecoverable.

The thing that keeps SA in the game is the disaster that’s happening abroad.

The international disaster is hammering emerging markets first. Not sure if you thought about what you wrote or understand international economies.

If there is trouble in Europe, people move their assets from high risk areas into low risk areas. SA is a high risk, possible high reward investment country and during turmoil these investments get liquidated first at whatever pace possible.

When things go great in developed markets thats when emerging markets do excellent with growth and investments because people have excess funds to "gamble" with in emerging markets thus they take greater risks.

Pretty obvious that funds are being moved out of high risk markets into gold right now and possibly other safe haven assets.

 

[Swa]

Disagree slightly.. I think we on the cliff and it’s the political squabbles that make things look unrecoverable.

The thing that keeps SA in the game is the disaster that’s happening abroad.

You heard the saying if America sneezes the world catches a cold? That's what's happening. If it wasn't for our political instability and bad to atrocious policies we'd be able to weather it a bit better than we are now. As it is now we're off the cliff as the ANC neither has the know-how nor political will to turn things around and it will take a regime change to get us out. You think the votas will catch a wake up 5 years from now instead of listening to what they say again? Me neither.

 

[Jings]

You heard the saying if America sneezes the world catches a cold? That's what's happening. If it wasn't for our political instability and bad to atrocious policies we'd be able to weather it a bit better than we are now. As it is now we're off the cliff as the ANC neither has the know-how nor political will to turn things around and it will take a regime change to get us out. You think the votas will catch a wake up 5 years from now instead of listening to what they say again? Me neither.

Botswana's Pula rate of exchange in comparison is a really good indication of how government has deliberately messed up our economy. Up until the last quarter of 2014 ZAR rate of exchange was similar in value to BWP at around 10.90 to USD. From there it has never recovered to that value. Government has royally screwed all its citizens, even the poor because they have to pay tax in the form of VAT.

 

[John Tempus]

Botswana's Pula rate of exchange in comparison is a really good indication of how government has deliberately messed up our economy. Up until the last quarter of 2014 ZAR rate of exchange was similar in value to BWP at around 10.90 to USD. From there it has never recovered to that value. Government has royally screwed all its citizens, even the poor because they have to pay tax in the form of VAT.

Ye

How in the world is the Pula 38% stronger than the ZAR. I assume Botswana is actually trying to improve their country with what little they have vs our looting gangster.

 

[Lupus]

Ye

How in the world is the Pula 38% stronger than the ZAR. I assume Botswana is actually trying to improve their country with what little they have vs our looting gangster.

Botswana Pula has been stronger for quite sometime, I remember chatting to someone on IRC and it was about 20% stronger in 2000s. In 2012 strangely it dropped to almost the same as us.

 

[Dolby]

I needed to buy €1,600 for September and bought €1,000 a few weeks back at R15.78.

I didn't buy the remaining as I never ever expected it to be at this rate only a few weeks later.

I'm still unsure about buying the rest or waiting a bit

 

[Arthur]

FNB's Rand Sell Rate for USD is 15.55.

 

[Swa]

I needed to buy €1,600 for September and bought €1,000 a few weeks back at R15.78.

I didn't buy the remaining as I never ever expected it to be at this rate only a few weeks later.

I'm still unsure about buying the rest or waiting a bit

Chances are the dust will settle again with the trade chaos. Trump will revert again and then later make new threats.

 

[maumau]

Let's hope so. The way things are going R14 looks good.

 

[Segg]

Ye

How in the world is the Pula 38% stronger than the ZAR. I assume Botswana is actually trying to improve their country with what little they have vs our looting gangster.

In comparison to SA, I'd definitely agree, however since Ian Khama vacated his post, there has actually been relative amounts of instability compared to Khamas administration, so much so that Khama now actually supports the opposition to his previous party (bare in mind he vacated his post on good terms, and in a way chose his successor, who has now essentially told him to go get stuffed)

Here is a good read about it

 

[Segg]

I see news 24 is reporting 1 USD = 15.41 ZAR