The ZAR Exchange Rate Thread

Status
Not open for further replies.
saturnz said:
what part of the statement is nonsense, are you saying central banks are not privately owned?

are you saying fiat currency is not a rip off?
Click to expand...

No, you are being disingenuous about it, making it sound like the SARB is no different to FNB or ABSA.

Government, still has a major controlling role in the bank as the president appoints the Governor and three deputy governors and 4 directors. Only the remaining 7 are appointed by shareholders of which no single shareholder can hold more than 10 000 shares and can only receive a maximum of 10 cents a share dividend.
 
FoXtroT said:
No, you are being disingenuous about it, making it sound like the SARB is no different to FNB or ABSA.

Government, still has a major controlling role in the bank as the president appoints the Governor and three deputy governors and 4 directors. Only the remaining 7 are appointed by shareholders of which no single shareholder can hold more than 10 000 shares and can only receive a maximum of 10 cents a share dividend.
Click to expand...


Governor Lesetja Kganyago, gives better understanding of the origin, structure and function of the Reserve Bank..

https://www.enca.com/media/video/ta...ve-bank-governor-lesetja-kganyago-part-1-of-3
 
FoXtroT said:
No, you are being disingenuous about it, making it sound like the SARB is no different to FNB or ABSA.
Click to expand...

The Reserve Bank is no different to ABSA,FNB etc. In fact the Reserve Bank is even worse. The problem with the Reserve Bank is the way it operates by creating a low interest loan to commercial Banks that in turns gouge the public with interest rates 10x or more above the rates they are given by the Reserve Bank. Without the Reserve Bank our banks would be compelled to be much more competitive on interest rates and be much more selective on creating loan facilities without trying to exploit the public. This is not unique to South Africa though but it also does not remove the fact that the Reserve Bank enables the criminal loan institutions from operating this way.

Why the Reserve Bank deem it fair practice giving Commercial Banks access to low interest loans but not offering the same to the public is outright criminal. They are creating a profitable exploitive banking industry just by existing and at the same time when these banks operate criminally and crash the markets they doubledip by asking for bailouts in a system already rigged in their favour from day one.
 
Last edited:
John Tempus said:
The Reserve Bank is no different to ABSA,FNB etc. In fact the Reserve Bank is even worse. The problem with the Reserve Bank is the way it operates by creating a low interest loan to commercial Banks that in turns gouge the public with interest rates 10x or more above the rates they are given by the Reserve Bank. Without the Reserve Bank our banks would be compelled to be much more competitive on interest rates and be much more selective on creating loan facilities without trying to exploit the public. This is not unique to South Africa though but it also does not remove the fact that the Reserve Bank enables the criminal loan institutions from operating this way.

Why the Reserve Bank deem it fair practice giving Commercial Banks access to low interest loans but not offering the same to the public is outright criminal. They are creating a profitable exploitive banking industry just by existing.
Click to expand...

LOL!!!
 
Sinbad said:
What astounds me is that the likes of that are allowed to breed.
Click to expand...

Cute. Your comment reflects that you clearly dont understand how the Reserve Bank operate or choose to ignore it. What about my comment did you not understand or do you disagree with ? Answering with just 'LOL' is not an argument.
 
John Tempus said:
Cute. Your comment reflects that you clearly dont understand how the Reserve Bank operate or choose to ignore it. What about my comment did you not understand or do you disagree with ? Answering with just 'LOL' is not an argument.
Click to expand...

I wasn't trying to argue with you. I was laughing at you.
I think you might find I understand fractional reserve banking somewhat better than you do, and also you might find that it's kind of illegal for a bank to loan out at 10x the repo rate as you allege.
 
Sinbad said:
I wasn't trying to argue with you. I was laughing at you.
I think you might find I understand fractional reserve banking somewhat better than you do, and also you might find that it's kind of illegal for a bank to loan out at 10x the repo rate as you allege.
Click to expand...

Oh you understand Fractional Reserve banking, impressive. You should definitely tell the rest of the world that because no one else really understand it besides reading synopsis and conveniently when sh%t hits the fan they all claim it was just too complicated.

You clearly dont know more than me or much at all about how the Reserve Bank operate with Commercial Banks but nice try.

So 10x is not in play on all interest rates but lets look at repo of 6.75% and creditcard yearly interest rate of 21% which is roughly the norm for SA banks. Creditcards are the most common ways of lending in South Africa, much more common than an actual personal loan from a Commercial Bank. The only loans that seem to be just a few percentage points above repo rate is homeloans but that covers a tiny faction of South Africans. As you might have guessed, the majority of South Africans cannot and will not own any property nevermind qualify for a homeloan.

Now let me try educate you again or you might just say this does not count as Commercial Banking. It is perfectly fine for Payday loan providers to offer at rates of 70%+ APR who in many cases operate as a arm and underwrited by some commercial Banks. This is 10x repo rate and in many cases higher and perfectly legal.

I know I am wasting my time to even respond but its absolutely amusing to me seeing these kinds of blind defense by people who I suspect doesn't have much networth to speak of in any case.

I await you strawmanning yourself out of this.
 
R12.68 to a Dollar and still firming. Possible to see sub R12 when Cyril is confirmed?
 
Scooby_Doo said:
time to buy some tasty USD?
Click to expand...

Economist Mike Schussler will have us believe that is a good idea. Says Rand/$ will settle back to low R13's in the next few days as it over-strengthened and too quickly.
 
FlashSA said:
Economist Mike Schussler will have us believe that is a good idea. Says Rand/$ will settle back to low R13's in the next few days as it over-strengthened and too quickly.
Click to expand...

Don't think R13 is realistic tbh. As long as we don't furk it up for the next while, nothing *should* happen over R12.80.
Agree that the move was quick and sudden but there are no gaps in the market so nothing to close as it were. Just basic fundamentals and truthfully the rand was strengthening before the ANC conference. From R14 to R12 in 4 weeks :wtf: trend is downward.
Hopefully we get a decent cut in petrol and not 6c :sick:
 
Status
Not open for further replies.
Back
Top
Sign up to the MyBroadband newsletter
X