The ZAR Exchange Rate Thread

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As I mentioned elsewhere in 2008 I bought USD for 7.72. Considering that we have 6% inflation and the USD 1% we should currently be at around 9.85 to match the 2008 level.

Hence this is just a long overdue correction.
 
Cius said:
As I mentioned elsewhere in 2008 I bought USD for 7.72. Considering that we have 6% inflation and the USD 1% we should currently be at around 9.85 to match the 2008 level.

Hence this is just a long overdue correction.
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Not so. We are undervalued....
 
antowan said:
The root cause of all this when you boil it down is the ANC's reluctance to allow AMCU a legitimate foothold in the mining industry because of NUM's alliance with COSATU, who in turn is part of the tripartheid alliance. In other words if AMCU is given legitimacy the voting patterns in the next election will be unpredictable as COSATU and co generally urge their members to vote ANC. AMCU is a wild card...


Striking unions have cause confidence issues for investors... Marikana being a result..
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This is a contributing factor but it is not the route cause of this. Please read the article I posted earlier in the thread.
 
Thingyyyyyy said:
retail?

You will have to elaborate.
Services? Humans giving services?
Software? Which software?
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What about it don't you understand? Those are amongst the biggest sectors of our economy, however they struggle in exports. A better exchange rate will benefit them
 
Devill said:
Import vs export ratios change slowly as dependency on imports coupled with the inability (due to infrastructure / skills) to produce larger quantities (and get them in cheaper than Brazil / china / india etc) to grow our export, this all could have a VERY bad kick back.
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Quite possibly. For me, this is VERY good
 
We're recovering SLIGHTLY... but I still think we'll probably close today over R10.
 
zippy said:
Sounds stupid. Investing based on sentiment=epic fail. Tbh, I don't believe it :)
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Who said anything about sentiment? Why would the local population sell their bonds at an absolutely **** rate, when they can buy bonds off of the risk averse foreigners at a steal of a deal.
 
Very very tough times if you need to import performance car parts. I know of a lot of guys that are putting projects on hold right now. As if it's not expensive enough, but now it's just crazy.
 
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