The ZAR Exchange Rate Thread

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airborne said:
When is the civil war starting, there are going to be so many cold, hungry and penniless people this winter?
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Pikitup already started the strike season. Actually they jumped the gun, but no doubt it's coming like every year.
 
Nefertiti said:
the first one is correct, the 2nd link you posted look like a place where they determine the rate via some modelling...

but yea, it will be painful if we hit 25% again :( actually anything above 13% for me personally
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IIRC, it completely killed the property market. Imagine paying 25+% of the entire property, every year. My first house was 1.5x my annual starting salary (shortly after this peak was hit). Hard to do that today.
 
cguy said:
IIRC, it completely killed the property market. Imagine paying 25+% of the entire property, every year. My first house was 1.5x my annual starting salary (shortly after this peak was hit). Hard to do that today.
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Dear Lord!
I thought the interest on property bonds was calculated once off, ie 12% added to the principle once off at initiation but compounded annually, is it really 12% charged on the outstanding bond per year?
That's robbery!
 
Garson007 said:
Interest rate has been a lot higher in the past.
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StrontiumDog said:
Yeah, prime hit 25.5% in August 1998!

<edit>Removed, I was not reading it right :p</edit>
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But we do have a bit of a perfect storm with significantly higher energy costs, poor exchange rates, years of inflation that has barely been matched at the lower income scales. And the drought which has priced many stables through the roof.

Apparently many governments hugely subsidise some staple foods to artificially keep prices affordable and the lynch mobs at bay, hope ours is clever enough to make sure that happens. And don't forget not to cut people's illegal electricity connections!! :I
 
airborne said:
Dear Lord!
I thought the interest on property bonds was calculated once off, ie 12% added to the principle once off at initiation but compounded annually, is it really 12% charged on the outstanding bond per year?
That's robbery!
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What part of "per annum" do you not understand?

Or do you think that if you invest your money at any institution for 20 years they will give you back 12% of your investment in interest?
 
cguy said:
IIRC, it completely killed the property market. Imagine paying 25+% of the entire property, every year. My first house was 1.5x my annual starting salary (shortly after this peak was hit). Hard to do that today.
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Right...but the real value of the capital amount also drops by 25% each year (more or less).
 
HavocXphere said:
Right...but the real value of the capital amount also drops by 25% each year (more or less).
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True, but similar to the ride over the last year or so, salaries weren't increasing to match, so as the rates climbed in the mid-90's, housing became very affordable to those who had a bit of liquidity, and very unaffordable to those who didn't - on average the relative values decreased. On the other side of the hill, when the rates were coming down, housing became affordable again, but for a few years the prices didn't increase because people were afraid that a rate hike back to the values they had become used to would make them lose their properties.

I bought at exactly this time, since I cunningly predicted national stabilization and the massive growth of the property market in the early 2000's... Well, actually I didn't know what the hell I was doing, so I bought recklessly, and just got lucky. ;)
 
airborne said:
Dear Lord!
I thought the interest on property bonds was calculated once off, ie 12% added to the principle once off at initiation but compounded annually, is it really 12% charged on the outstanding bond per year?
That's robbery!
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Haha. No. Interest is always calculated on the outstanding balance and compounded.
 
Xarog said:
R16.67 : $1 -> R1 : $0.059
R14.29 : $1 -> R1 : $0.069

Okay, so apparently you're trying to say that R1 buys you simply one less cent. Nevertheless, that represents a 16% difference in the strength of the currency.

Similarly:

R1000.00 : $1 -> R1 : $0.0001
R2000.00 : $1 -> R1 : $0.00005

Hmm, look at that, According to Swa logic the strength of the Rand in this scenario changed immesureably.

Is the maths right, Swa?
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No you're still thinking in rand terms. In dollar terms the difference is less than 1 USD cent. Also you're fudging the figures here. The 12 zar cent difference people were calling unstable is less than 1% so not really unstable.
 
Swa said:
No you're still thinking in rand terms. In dollar terms the difference is less than 1 USD cent. Also you're fudging the figures here. The 12 zar cent difference people were calling unstable is less than 1% so not really unstable.
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I'm still thinking in Rand terms?

Look:
R16.67 : $1 -> R1 : $0.059
R14.29 : $1 -> R1 : $0.069
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Let's reverse the order:

$0.059 : R1 -> $1 : R16.67
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See?

How is the maths wrong?
 
StrontiumDog said:
@Xarog, you're wasting your breathe...
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I know, but he likes to argue basically that he can prove God exists because math, so this is pretty much a once in a lifetime opportunity... :whistle:

Edit :

http://mybroadband.co.za/vb/showthr...ate-Thread?p=16863203&viewfull=1#post16863203

Dave123 said:
Swa said:
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.
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The true value of anything is what the world will pay for it...
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If you follow that conversation you will see what I mean. Objective value is Swa's go-to argument. But now that he's been proven to be mathematically incompetent, no one need ever take any of his arguments about objective value and his capacity to derive it seriously ever again.

And the fact that he won't admit such a clear mistake just makes it all the better.
 
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