The ZAR Exchange Rate Thread

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Nefertiti said:
and what do you base this assessment on?
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JayM said:
You mean right after the downgrade?
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Heard Simon brown say it first and then a friend of ours who's a fund manager at coronation.

Then also a little investment group I follow said similar.


And I personally feel this entire ront is artificially weakened for a Chinese agenda
 
Thor187 said:
Heard Simon brown say it first and then a friend of ours who's a fund manager at coronation.

Then also a little investment group I follow said similar.


And I personally feel this entire ront is artificially weakened for a Chinese agenda
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Not buying it in the least.

The Rand's weakness is similar to the weakness of other emerging market currencies.
 
Thor187 said:
Heard Simon brown say it first and then a friend of ours who's a fund manager at coronation.

Then also a little investment group I follow said similar.


And I personally feel this entire ront is artificially weakened for a Chinese agenda
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He also said that if we get a junk rating, all bets are off.
 
Xarog said:
Not buying it in the least.

The Rand's weakness is similar to the weakness of other emerging market currencies.
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I don't care. But I really don't think this erratic weakening just happened.

The Rand got here cause someone wanted it here.
 
Thor187 said:
I don't care. But I really don't think this erratic weakening just happened.

The Rand got here cause someone wanted it here.
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Perhaps you've noticed what happened to the Chinese stock market this week.
 
Thor187 said:
China/SA same thing they own us.
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:rolleyes:

So you're basically saying the Chinese conspired to rig the Rand/Dollar exchange rate by causing a meltdown in their stock market that tripped the stock market failsafes that shut the market down for the entire day two days in a row?

Because unless that is your argument, then your claim is complete rubbish and actually it is far more reasonable to come to the conclusion that such a massive event in China has had knock-on effects for all the other emerging market currencies, and the Rand's loss of value does not mean that the Rand has been artificially weakened.

So I expect if what you're saying is reasonable you'll have a better explanation than what you've presented so far.
 
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Xarog said:
:rolleyes:

So you're basically saying the Chinese conspired to rig the Rand/Dollar exchange rate by causing a meltdown in their stock market that tripped the stock market failsafes that shut the market down for the entire day two days in a row?

Because unless that is your argument, then your claim is complete rubbish and actually it is far more reasonable to come to the conclusion that such a massive event in China has had knock-on effects for all the other emerging market currencies, and the Rand's loss of value does not mean that the Rand has been artificially weakened.

So I expect if what you're saying is reasonable you'll have a better explanation than what you've presented so far.
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That's not what I said at all. I get the feeling your just being a little dick now.

(:

All I'm saying is our Rand did not get to where it is because of natural declines
 
Thor187 said:
That's not what I said at all. I get the feeling your just being a little dick now.

(:

All I'm saying is our Rand did not get to where it is because of natural declines
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And I'm saying that this week the jumps were natural, and that the trend itself is natural due to the fact that all emerging market currencies have the same trend.

The financial crisis from 2007/2008 is finally returning in full swing after the world's central banks tried to kick the can forward instead of answering the music. That's what is causing the Rand's loss of value and that explanation alone is sufficient to explain what has happened to the Rand in the last two years.*

*Zuma's stupidity definitely played a part, however.
 
Thor187 said:
I don't care. But I really don't think this erratic weakening just happened.

The Rand got here cause someone wanted it here.
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Yup, it's artificial whatever the means is. The true value of our currency is closer to R7/$ or maybe R8 after Zuma ****ed up.
 
Swa said:
So the terms under- and overvalued mean nothing?
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Not when discussing a commodity. I could say a banana is worth a $100, doesn't mean it is, it's only worth what others will pay. I may have overvalued it, but it's true value is that price it actually sells for.
 
Dave123 said:
Not when discussing a commodity. I could say a banana is worth a $100, doesn't mean it is, it's only worth what others will pay. I may have overvalued it, but it's true value is that price it actually sells for.
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Inb4 SWA's counter-argument ultimately boils down to a thing having a particular instrinsic value which he cannot objectively define.
 
Xarog said:
Inb4 SWA's counter-argument ultimately boils down to a thing having a particular instrinsic value which he cannot objectively define.
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True, but everyone would have a different opinion of that intrinsic value, with currency it's the price the markets will pay that is the true value. Any other perception of a value is simply opinion.
 
Dave123 said:
True, but everyone would have a different opinion of that intrinsic value, with currency it's the price the markets will pay that is the true value. Any other perception of a value is simply opinion.
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The true value in this case is also an opinion; it is simply a selectively shared opinion.
 
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