The ZAR Exchange Rate Thread

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Arthur, it depends on whether the rates that have been shown here are retail or interbank rates. Finance sites will typically show interbank rates with say a 15 minute delay. The bid/offer spread on interbank rates is typically somewhere between 25c and R1. Which sometimes leads the sites to quoting mid rates.
 
milomak said:
...retail or interbank rates...mid rates.
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Right, milomak.
I didn't want to complicate things.
I do however think the media should quote Rand Sell public (retail) exchange rate to give people a more realistic sense of what their Rand is worth. (This is for sums under R50k.)
 
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Given the current account deficit it seems to be the case the country is a net importer of goods and as such the buy side rate would be the more relevant.

EDIT: In any event this thread is hardly for people who want to know what rate they can buy and sell dollars at, but rather the general "feel good" (or feel bad) factor currencies have on the psyche of people here.
 
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$ = R 7.59
£ = R 15.103
€ = R 11.913
Oil = $ 117.26
Gold = $ 891.85
Last update:
25 Apr 2008 17:30:00

Under R12/Euro for the 1st time in a while...
 
Emergency MPC meeting
Article By:
Fri, 25 Apr 2008 17:25

The Reserve Bank could call an emergency Monetary Policy Committee meeting in the face of a worsening inflation outlook, the SABC reported on its website on Friday.

In an exclusive interview with the SABC TV News, Reserve Bank Governor Tito Mboweni said things had drastically changed since the last MPC meeting three weeks ago.

He also hinted at the probability of the MPC hiking interest rates by more than half a percentage point - as had been the case so far.

Mboweni complained of the continuing increases of administered prices that ignored inflation targeting, the SABC said.

He also ruled out adjusting inflation targeting.
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http://business.iafrica.com/news/748713.htm
 
The rand was firmer against major currencies in late trade on Friday ahead of the long weekend – particularly against the euro which remained under pressure against the US dollar.

By 3.40pm the rand was bid at 7.5760 to the dollar from a previous close of 7.6830. It was bid at 11.8752 to the euro from a previous 12.0520 and at 15.0838 against sterling from 15.1704 before.

The euro was bid at US$1.5622 from $1.5681 overnight, while gold was quoted at $895.80 a troy ounce from $888.00 overnight.

Traders said the euro-rand play was the dominant feature of the day, but cautioned that wild swings were still possible.

Dow Jones Newswires reports that the dollar advanced against key rivals Friday on the recalibrated expectation that the Federal Reserve won't continue to sacrifice the greenback's yield after the next monetary policy meeting.

Currency traders have found favour with the buck on the new view that the Fed's interest rate easing will come to a halt after another 25-basis-point reduction next Wednesday - also less of a cut than previously predicted. That is supporting the dollar's outlook, especially versus the higher-yielding euro, on the expectation that the interest rate differential between the two regions will not continue to expand - and the hope that it may even soon narrow.

The euro fell to a three-week low of $1.5555 and the dollar gained to almost a two-month high against the yen of Y104.82. The advances began Thursday after a Wall Street Journal article suggested the Fed would pause after April, combined with weak euro zone data and more direct language on foreign exchange volatility from European Central Bank President Jean Claude Trichet.

"Global financial markets are witnessing a sharp reversal of the flight-to-quality trade on the view that further financial sector losses are manageable and that the U.S. real sector downturn may not be quite as deep as first feared. Supporting this view over coming days will be US tax rebates hitting taxpayers' bank accounts next week and the sense that Wednesday's (Federal Open Market Committee) statement may in some way signal a pause in the easing cycle," said Chris Turner, head of foreign exchange strategy research at ING Wholesale Banking in London.

MPC rumours hit the short end

Short-term bonds lost significant ground in the afternoon on Friday after talk arose that central bank governor Tito Mboweni may call an emergency MPC meeting due to increased inflation risks.

By 4.50pm the short-term government R153 bond was at 10.265 percent from its previous close of 10.250 percent, while the medium-term R157 was at 9.410 percent from 9.435 percent at its previous close. The longer-term R186 bond was at 9.230 percent from its previous close of 9.265 percent.

I-Net Bridge
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http://business.iafrica.com/randwatch/749232.htm
 
$ = R 7.535
£ = R 14.994
€ = R 11.791
Oil = $ 116.48
Gold = $ 891.88
Last update:
29 Apr 2008 07:30:00

More strengthening afoot.
 
Arthur said:
The rates quoted in many/most of the posts above are wrong.

Almost all Rand/$ rates quoted in the preceding posts mention the Rand Buy rate, ie if you have foreign currency and you want to buy Rand. However, the discussions assume transactions the other way round ... how many Rand it takes to buy the particular foreign currency.

A clear distinction should be drawn between the Buy rate and the Sell rate.

Rand Buy Rate = the number of Rand you get if you buy Rand with foreign currency, ie if you exchange say your dollars for Rand. This is the figure usually quoted in media.

Rand Sell Rate = if you sell Rand to buy foreign currency, ie the number of Rand it takes to buy the desired foreign currency. This is a higher number, ie it takes more Rand to buy say $1 than you will get if you exchanged $1 for Rand.

For example, today (25 April 2008) the quoted bank average is as follows:

US Dollars
Rand Sell Rate: 7.7712
Rand Buy Rate: 7.5315

Euro
Rand Sell Rate: 12.1751
Rand Buy Rate: 11.6926

British Sterling
Rand Sell Rate: 15.4979
Rand Buy Rate: 14.8829

There's a further wrinkle: there are different exchange rates if you transact in notes, TCs or TT/wire.

To get a realistic sense of how much the Rand is really worth in say US$, you should look at the Selling Rate as quoted by the commercial banks. Their online banking websites usually have a fuller spectrum of rates.

Bottom line: we're worse off than the typically quoted Buy rate suggests!
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Some interesting points there, duly noted:)

For the sake of consistency it make sense to continue quoting the rates the way we have upto now.
 
$ = R 7.582
£ = R 14.979
€ = R 11.834
Oil = $ 114.76
Gold = $ 879.7
Last update:
29 Apr 2008 16:30:00

Still strong then...
 
Arthur said:
The rates quoted in many/most of the posts above are wrong.

Almost all Rand/$ rates quoted in the preceding posts mention the Rand Buy rate, ie if you have foreign currency and you want to buy Rand. However, the discussions assume transactions the other way round ... how many Rand it takes to buy the particular foreign currency.

Bottom line: we're worse off than the typically quoted Buy rate suggests!
Click to expand...

My view is that it does not matter what rate is quoted as long as it is the same one each time. Most people are interested in the general trend and direction of movement. If the one rate was improving, so would the other.

The only time you want the actual rate is when you are standing at the foreign exchange counter!
 
Live rates at 2008.05.03 06:30:22 UTC
1.00 GBP = 14.2275 ZAR
United Kingdom Pounds South Africa Rand
1 GBP = 14.2275 ZAR 1 ZAR = 0.0702864 GBP

XE.com - it must be wrong!?!? :confused:
 
$ = R 7.592
£ = R 14.984
€ = R 11.751
Oil = $ 115.19
Gold = $ 864.7
Last update:
05 May 2008 11:30:00

Opened fairly firm after long long weekend.

Rumours abound that the worst of the US sub-prime credit debacle is behind us...

Can't believe petrol is going up again :(
 
$ = R 7.521
£ = R 14.721
€ = R 11.612
Oil = $ 120.43
Gold = $ 870.63
Last update:
07 May 2008 13:30:00


More strengthening. Apparently in part due to the overseas interest in MTN and some o0ther external factors.
 
Yip, that is what I heard as well. Petrol going up past R10/l net month as well.


$ = R 7.596
£ = R 14.856
€ = R 11.709
Oil = $ 121.71
Gold = $ 883.95
Last update:
08 May 2008 18:30:00
 
They are moving past R10.(Diesel) They said u must just multiply the price by 10:rolleyes:
 
alf101 said:
So, from what I've reading and hearing, CPIX gonna hit 15.1% in November, 50bp rate hike next month, and another 100bp at the next meeting.
Not nice.
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Jesus what doom and gloom publications are you reading? CPIX (not taking Eskom hikes into account), should peak somewhere in the 10% region. June rate hike a given. The August one is very likely. Both June and August 50bp.

Reuters consenus has CPIX averaging something like 6.3% next year. Difficult to tell who has factored Eskom and who hasn't.
 
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