The ZAR Exchange Rate Thread

[MKFrost]

Looks like we are heading down, volumes are dropping on this last up move showing a lack of interest. my money is on back towards R10.60.

 

[LazyLion]

Eish not good but on flip side, looks like some of our mining firms will once again see record earnings due to weaker rand

Not necessarily, many of the mining companies downsized when the economy shrank, and they would need to make capital acquisitions in order to benefit from the higher export prices, but the capital expansion will be too expensive due to the weak rand. And anyway, the gold and platinum prices are so low right now that they are not making much profit anyway. On top of all this the South African export sector is so sluggish to react that they rand will have swung the other way before they can even get their act together.

 

[Garson007]

The sooner we lose our perceptions of South Africa as being a mining economy, the better.

 

[gregmcc]

Hells bells!
£1 = R17.89

 

[MKFrost]

Hells bells!
£1 = R17.89

Yup, and I'm heading to London for three weeks end of Feb, luckily my main account is held in pounds so will not be such a socker

 

[Seriously]

That ^

#ProudlyBroughtByANC

Viva the brainless ANC!

 

[modern10]

The depreciation has little to nothing to do with the ANC. The tapering by the Fed is one of the main reasons.

Foreigners are selling their rands because they expect better yields in developed economies.

Guys should read the Business Day before make stupid comments.

 

[Hoekachaka]

Um. The quoted growth rate is in general a real rate; inflation is already accounted for.

Will you care to explain? One liners like the ones you posted, do little to convince. Do you understand the difference between economic growth and monetary inflation. Money can be printed at will without adding any value to the economy. What exactly are you saying?

 

[Midnight_choir_drunk]

Will you care to explain? One liners like the ones you posted, do little to convince. Do you understand the difference between economic growth and monetary inflation. Money can be printed at will without adding any value to the economy. What exactly are you saying?

That's chiefly what causes inflation.

He's right. The growth rate is a real rate. To compare our GDP from one era to a next is a apples for apples for comparison because they correct for inflation.

 

[MKFrost]

The depreciation has little to nothing to do with the ANC

A large part of the Rand depreciation has to do with the ANC. Since 2009 other economies have recovered their losses against the Dollar while the Rand just got weaker and weaker. Go look at almost any other currency after 2008 and compare that to the Rand. The Rand went against the trend and headed in the opposite direction and it has remained in an almost linear trend since early 2009.

Our economic policies are not firm and or not clear. There is no firm commitment from government in regards to many aspects of the economy and that makes SA a less desirable location for investment. With the current tapering taking place we would have been the ideal location to invest in but there is just to much uncertainty.

The tapering leads to a stronger Dollar and we should have been able to weather this if the Rand was stronger but it did not gain against the Dollar while others have as we lacked the necessary investments to support the Rand.

So saying that the present government have nothing to do with the depreciation is a bit far off.

 

[LazyLion]

R10.9428

 

[Jola]

The depreciation has little to nothing to do with the ANC.

Yes, of course, gross economic mismanagement and vast corruption will never impact the exchange rate.

 

[Sinbad]

Yes, of course, gross economic mismanagement and vast corruption will never impact the exchange rate.

Not to mention inability to control the unions with their sabotage of mining and other companies, which really ENCOURAGES investment inflow.

 

[Seriously]

The depreciation has little to nothing to do with the ANC. The tapering by the Fed is one of the main reasons.

Foreigners are selling their rands because they expect better yields in developed economies.

Guys should read the Business Day before make stupid comments.

So the ANC are not the responsible entity that set the guidelines and control the parameters and thus the performance of our economy?

Fart me another brainfart please!

 

[Sinbad]

The 2 year graph of USDxZAR is very scary.

 

[Sherbang]

So the ANC are not the responsible entity that set the guidelines and control the parameters and thus the performance of our economy?

It's called a global economy for a reason...

 

[Jola]

It's called a global economy for a reason...

Yes, the global economy sets standards, and if your economy does not live up to its responsibilities then you get nailed.

 

[Seriously]

It's called a global economy for a reason...

That's correct, you have it 100% for once but that's why HOW you manage your economy and economic policies and conduct business in your country have a major influence on the exchange rate with the rest of the globe.

That's WHY the ANC are responsible!

 

[Zyzzyva]

If we break R11 and the trendline there really isn't much resistance for quite some time. It reminds me of usdcad.

https://www.tradingview.com/x/7R1jXFvV/

 

[MKFrost]

Here is another chart of the Rand from 2008 to present. Currently sitting at R10.9423....