Grant
Honorary Master
any speculation as to where the exchange rate may be at month end ?
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The ZAR Exchange Rate Thread
- Thread starter Robin Hood
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Pitbull
Verboten
Dollar is only going to climb now with OPEC crashing. The Dollar should reach close to R13 end of this month. But it's Festive so it might just stagnate now till around Mid January. You going to the States and need to buy Dollars? If so, do it now. It's not going to get better.
Grant
Honorary Master
other way around. selling / transferring into sa
The_Ogre
Honorary Master
Then leave that cash until the beginning of jan, which is the point at which I think the USDZAR will start coming down very slowly
Pitbull
Verboten
Better hang on a bit to around mid end January. That is what I'll do. Depends, if you need the money over this time try and delay it as long as possible.
Grant
Honorary Master
it's not needed now.
i have 2 companies, in both cases the major client is us based.
invoicing / payment for both is usd based.
for the one co, amounts due are payable to a us based bank account.
for the other, amounts due are payable here (that can be changed as above).
the way things are structured, the local account covers operational expenses of both companies.
(it's a little more complicated than that - but not going to go into endless detail).
i think it's time i took a closer look at taking advantage of forex fluctuations.
Pitbull
Verboten
In that case you can make a killing with trading back and forth. It's risky though but not that unpredictable. Maybe go to a seminar about Forex trading? They should give you an idea of what to look for as indicators to a currency increasing or decreasing.
Grant
Honorary Master
dont think i would venture into trading, but investec has twice in the past offered to manage (the timing, as i think they called it) the transactions.
from an invoicing aspect, by agreement, invoicing is flexible & does not have to be done every 30 days, it can run in up to 120 day cycles.
this is where the bank suggested they assist.
the suggestion was to hold off a couple of months (within the agreement) and invoice when the usd was high, then split the payment received, using say 50% to buy equities ie gold shares, & the balance remain as cash in the us bank account.
(or something to that effect).
at the time i thought it was too much hassle, but maybe it's time to rethink.
does this make sense ?
i'm a little clueless when it comes to these types of financial transactions, i'm good for generating the income, but not too hot when it comes to the administration & management of the same
It's not coming down by much. The trend that has existed since 2011 still exists today and we're pretty close to it all things told - so only up it will go.
Pitbull
Verboten
dont think i would venture into trading, but investec has twice in the past offered to manage (the timing, as i think they called it) the transactions.
from an invoicing aspect, by agreement, invoicing is flexible & does not have to be done every 30 days, it can run in up to 120 day cycles.
this is where the bank suggested they assist.
the suggestion was to hold off a couple of months (within the agreement) and invoice when the usd was high, then split the payment received, using say 50% to buy equities ie gold shares, & the balance remain as cash in the us bank account.
(or something to that effect).
at the time i thought it was too much hassle, but maybe it's time to rethink.
does this make sense ?
i'm a little clueless when it comes to these types of financial transactions, i'm good for generating the income, but not too hot when it comes to the administration & management of the same
I personally would diversify the investment more. All your eggs in 2 baskets can be very dangerous. But the idea is sound. Also, investing in Gold is a long term investment but this also helps the Rand strengthen. So if you do invest in gold try and do little at a time for longer.
Please note this is not financial advice, I'm just talking from what I would have done.
Gold, currency? Is bitcoin next? Rather diversify by investing into something less driven by speculators like the stock exchange (yes, really) or if you want to go really safe some inflation linked bonds.I personally would diversify the investment more. All your eggs in 2 baskets can be very dangerous. But the idea is sound. Also, investing in Gold is a long term investment but this also helps the Rand strengthen. So if you do invest in gold try and do little at a time for longer.
Please note this is not financial advice, I'm just talking from what I would have done.
Pitbull
Verboten
Gold isn't going anywhere anytime soon. I would never skip over Gold when investing. I'm a little scare of bitcoin, however some people have make massive amounts of money from it. Stocks are good, but you need to be very hands on to really make it worth your while. Unless you have an investment company doing it for you.
LazyLion
King of de Jungle
Not ALL their fault, but a large part of it is.
All the strikes over the last few years have also added to it.
etienne_marais
Honorary Master
Normal market forces as well as (what I consider abnormal) massive speculation by the big-shots, including George Soros. The S.A. government actually had an investigation into this (c. 2001) and called on protection from side-effects from speculation.
Demand and supply of currency is what determines the price of a currency. What determines demand and supply is a bit more tricky and will take years to understand, don't expect to be enlightened by attending a forex seminar.
Thanks for making me a little bit more wise.
But yea I figured this isn't something I will fathom any time soon it seems.
I would love to see that good ol sub R10 a dollar again.
a strong exchange rate is not necessarily a good thing, which is why China has for years tried to artificially weaken its currency against the US
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