Gooku
Senior Member
Yes they do, better than many .................
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The ZAR Exchange Rate Thread
- Thread starter Robin Hood
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Have you considered that the rand has generally been far weaker against the GBP and EUR as compared to the USD? Consider that if oil was priced in EUR/GBP then that would add further to rand weakness against those currencies? There is no guarantee whatsoever that oil would be cheaper. There is as good a chance we would be paying more for oil.
The generaklly weaker dolllar (even against ZAR) has helped mitigate the effects of oil. The thing we both cannot guess is by how much oil would have risen if priced in some other currencies.
If the rise in the oil price is partly attributable to the decreased value of the Dollar, then it should not have risen as much if it were traded in a stronger currency. Those currencies may or may not get stronger if they were the standard trading currency. Those currencies may not be comparable to the Dollar - the US Dollar be inherently much weaker if it were not propped up by being a standard trading currency.
Looking at the current exchange rates the oil price would be similar in all of them.
Looking at the current exchange rates the oil price would be similar in all of them.
Has it though if you look at the Pound-Dollar and Euro-Dollar exchange rates?
noxi - the problems of the USD are a result of the US economy and as such the USD would likely have been much weaker if there was no demand for USD as a result of oil purchases.
Regarding your last question, I am not exactly what it is you are trying to say.
Regarding your last question, I am not exactly what it is you are trying to say.
hj2k_x
Honorary Master
$ = R 7.44
£ = R 14.81
€ = R 11.26
Gold = $ 959.35
Oil = $ 99.08
Last update 27-Feb-2008 19:30:00
£ = R 14.81
€ = R 11.26
Gold = $ 959.35
Oil = $ 99.08
Last update 27-Feb-2008 19:30:00
Gooku
Senior Member
I am glad to see our Rand is heading for a healthy recovery... otherwise cpi will rise even further soon
Rand is often a target of speculative attacks.............
if fellow members are aware of any malicious attacks happening ,please name them in this forum.
We are capable of counterforce to institution players's attacks (they have exposures somewhere on this planet)
Revenge of the Geeks
.....................
until then ............ c u
Rand is often a target of speculative attacks.............
if fellow members are aware of any malicious attacks happening ,please name them in this forum.
We are capable of counterforce to institution players's attacks (they have exposures somewhere on this planet)
Revenge of the Geeks
.....................until then ............ c u
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hj2k_x
Honorary Master
$ = R 7.50
£ = R 14.87
€ = R 11.33
Gold = $ 956.48
Oil = $ 97.97
Last update 28-Feb-2008 12:30:00
Still staying relatively firm...
£ = R 14.87
€ = R 11.33
Gold = $ 956.48
Oil = $ 97.97
Last update 28-Feb-2008 12:30:00
Still staying relatively firm...
So does a currency being used as a general global currency simply shore up that currency when it would otherwise continue to weaken or will it make a strong currency stronger?
$1 is pretty much the same thing when translated into Pounds or Euros, then Rands.
a currency used as a global currency will be stronger than it would be if it wasn't because there would be less demand for it.
not sure what you mean. or over what time period you are taking about. Are you talking about trangulation? That the relationship between USDZAR, GBPUSD and GBPZAR will get you the same result no matter which you go about it? That is sell dollars, buy pound and then sell pounds, buy rands = sell dollars, then buy rands?
If it is triangulation you are talking about, the reason why it works is of course the old theory of arbitrage. If you can get more or less by choosing one method over another than people will exploit the situation to make money until that opportunity ceases to exist.
There is also the manner of how cross rates are quoted in SA in the inter-bank market. So when traders quote each other on GBPZAR they will quote GBPZAR (15.025) as USDZAR (7.55) x GBPUSD (1.99). It is for this reason that you generally find no currencies settle against the Rand when it is a US holiday. Because while the traders can settle the GBP and ZAR flows, they cannot settle the USD flows.
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hj2k_x
Honorary Master
$ = R 7.72
£ = R 15.31
€ = R 11.72
Gold = $ 967.57
Oil = $ 100.32
Last update 29-Feb-2008 15:30:00
£ = R 15.31
€ = R 11.72
Gold = $ 967.57
Oil = $ 100.32
Last update 29-Feb-2008 15:30:00
If you take the Rand, USD and GBP and plot their value.... you will notice that the major fluctuations are mainly on the rand. The USA/UK values dont fluctuate very much. If the USD was the currency being hammered, then this should reflect on the GBP valuation too.... but it doesnt.
the only option left is that the Rand is being de-valued.
http://mybroadband.co.za/vb/showpost.php?p=1509453&postcount=154
look at the table.
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d0b33
Honorary Master
I'm actually looking forward to the rand reaching the $8 mark at least, I earn mostly dollars now so it will benefit me greatly
hj2k_x
Honorary Master
I'm actually looking forward to the rand reaching the $8 mark at least, I earn mostly dollars now so it will benefit me greatly
Not if food, petrol and most of our imports keep going up as well.
d0b33
Honorary Master
lion_fish
Expert Member
$ = R 7.72
£ = R 15.31
€ = R 11.72
Gold = $ 967.57
Oil = $ 100.32
Last update 29-Feb-2008 15:30:00
Quite a change in 1 day.
hj2k_x
Honorary Master
Ya, that might be the biggest loss yet, day on day...
hj2k_x
Honorary Master
$ = R 7.75
£ = R 15.40
€ = R 11.77
Gold = $ 972.62
Oil = $ 100.71
Last update 29-Feb-2008 18:30:00
Closes even lower...
£ = R 15.40
€ = R 11.77
Gold = $ 972.62
Oil = $ 100.71
Last update 29-Feb-2008 18:30:00
Closes even lower...
Read an artice today that was written yesterday in Washington.
Prospects for this quarter are even worse.
The U.S. is officially in recession.
Had a growth rate of 0.06% for final quarter in 2007.
Bad news ahead.
if you take the last five years, the rand has strengthened against the dollar and weakened against the euro and pound. the simple maths tells you that if the the cross currencies (EURZAR and GBPZAR) are priced as USDZAR against GBP or EUR as the case may be, that it can strengthen against the dollar and weaken against EUR or GBP. Which is my point.
The price of oil would have likely risen no matter which currency it was priced against. And given we cannot ascertain how much it would have risen in another currency, it is surely better to have it priced against the one currency over which you have strengthened.
At the end of Feb 2003, the rand was roughly 8 against USD, 8.60 against EUR and 12.60 against GBP.
Incidentally the price of Brent in USD terms was at close to 34 at the time. So even if you factor that Brent has risen because of dollar weakness, you can't tell me that the basket of OPEC currencies would have strengthened by over 200% against the USD in that time frame.
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