The ZAR Exchange Rate Thread

Status
Not open for further replies.
reactor_sa said:
We're in an upward trend for the foreseeable future, they will increase it slowly in the hopes no one notice's. I recon it will double before coming back down.
Click to expand...
We pay our government bonds in Rands, this direclty affects the country's finances. And our GDP/Debt ratio is taking serious strain as it is. Raising rates increases the interest rates for the government too. People are going to notice if we start looking like Venzuela.
 
Xarog said:
We pay our government bonds in Rands, this direclty affects the country's finances. And our GDP/Debt ratio is taking serious strain as it is. Raising rates increases the interest rates for the government too. People are going to notice if we start looking like Venzuela.
Click to expand...

If spending continues to out run GDP, its only a matter of time. Raising interest rates then only helps delay the inevitable.
 
reactor_sa said:
If spending continues to out run GDP, its only a matter of time. Raising interest rates then only helps delay the inevitable.
Click to expand...
Raising rates makes the inevitable arrive more quickly. That is my point. The ANC is inbetween a rather nasty rock and a hard place. People just haven't seen it yet.
 
HavocXphere said:
Better to stay in the musical chairs game a bit longer than be the first to get kicked out
Click to expand...
Sure, but I'm curious to know what people's decisions were, and why.

I feel comfortable staying where I am, but to be quite honest if I was playing the "move to another country to avoid the **** show" game, I'd move to Russia. I suspect most people would disagree with me, though, but I'd find the discussion about it stimulating nonetheless. :p
 
Xarog said:
What was your reasoning?
Click to expand...
High inflation, weak rand driving inflation higher. Banks mandate is inflation. Higher interest drives down inflation and strengthens rand.
With the fed expected to raise rates next month this was inevitable IMHO
 
Garson007 said:
Why did the Euro jump on the back of further interest rate decreases?
Click to expand...
Current levels of quantitative easing were held, when majority expected a decrease. Draghi was was more hawkish than expected
 
HavocXphere said:
I thought FX trades round the clock?
Click to expand...

Usually 24/5 AFAIK. So all day, but not the weekends (well, nobody I know does at least, but it may be open, but with trivial volume), but it should start during Asian hours on Monday (~2AM monday morning, SA time).
 
cguy said:
Usually 24/5 AFAIK. So all day, but not the weekends (well, nobody I know does at least, but it may be open, but with trivial volume), but it should start during Asian hours on Monday (~2AM monday morning, SA time).
Click to expand...
Kinda what I was getting at...it never closes from what I can tell.
 
HavocXphere said:
Kinda what I was getting at...it never closes from what I can tell.
Click to expand...

What I meant by nobody, is that no venues I know of, trade during those hours (EBS, Reuters, Currenex, etc.). Perhaps some smaller venues do, but the big venues at least are closed.
 
Status
Not open for further replies.
Back
Top
Sign up to the MyBroadband newsletter
X