The ZAR Exchange Rate Thread

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Thor187 said:
It does if you don't live in SA anymore pounds will treat me well come April next year.
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Think of it like this.
Zimbabwe you could have had a million dollars. Then you see the crisis coming and swap your money to rands, maybe 2/1 or something, so now you have R500,000.00, right?
Then comes the great inflation of Zim, now each dollar is only worth an eighth of its previous value, so now it's 16 zim dollars a rand. If you convert it back, you still have R500,000.00 worth of zim dollars. It doesn't matter if you put it in bitcoin or anything else, it would still be the original value.

The differences come in if Zim would be e.g. producing its own goods, then those goods would become cheaper as they would most likely not adjust to such an extreme margin and all the labor is done within the country in the same currency as before.
South Africa imports near all its luxury goods (you love your S6? That doesn't originate in South Africa) and is now importing a lot of food as well, so they will be adjusted to the price of external currencies as one had to pay in that currency to get it.

You wouldn't become richer, everyone around you would just be poorer.
 
Johnatan56 said:
So you don't have the issue with the currency declining in value (the part where you swapped it into rands).
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Then I dont understand?

Most of my savings are in bitcoins since R11/usd

Thus if the rand goes belly up I would not be affected since I'll be living in the UK soon
 
Thor187 said:
Then I dont understand?

Most of my savings are in bitcoins since R11/usd

Thus if the rand goes belly up I would not be affected since I'll be living in the UK soon
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Yes, you wouldn't be affected. You wouldn't become rich though, that's what everyone is pointing out.
 
Johnatan56 said:
Yes, you wouldn't be affected. You wouldn't become rich though, that's what everyone is pointing out.
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Oh. Yea that's fine I know that :)

How does one become rich with a rand hedge I assume you buy a lot of Naspers and Richmond and Discovery health?
 
Think it'll hold steady (give or take minor fluctuations @ Gordhan)...until next rating review. Then it'll kark 30%+
 
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