Why the rand is starting to wear its underpants outside its trousers

yebocan

Honorary Master
Joined
Sep 22, 2005
Messages
11,320
The rand has powered to its best levels against the US dollar in 5 months, breaking through the R14/$ level this week – more because the greenback is weak than the rand is strong. Either way, your global buying power has improved substantially and if The Economist’s Big Mac Index is any indicator, the rand could be poised for even greater gains – but only if SA’s damaging domestic political issues lose prominence.
Burgernomics, the price one pays for a Big Mac in the US vs other countries in the world, was all started as a bit of a joke. But it has taken on a life of its own as it demonstrates what you can get for the price of an American Big Mac in other parts of the world. It’s an example of purchasing power parity where one uses the US dollar as base currency and compares a commodity in the US to those around the world. The Big Mac ticks a lot of those boxes.

https://www.businessinsider.co.za/bruce-whitfield-on-the-rand-2019-7
 

yebocan

Honorary Master
Joined
Sep 22, 2005
Messages
11,320
underwear, Big Mac, Burger King...whatever...don't care as long as the ZAR continues to strengthen... need to buy some $ soon
 

Spliffcat

Executive Member
Joined
Jun 4, 2013
Messages
5,954
Now drop the price of petrol. Ramaman and the millions of thieves.
 

garp

Executive Member
Joined
Aug 2, 2004
Messages
8,642
Good opportunity to take whatever money you can offshore...
 

MirageF1

Executive Member
Joined
Jun 29, 2018
Messages
6,528
For those busy or intending on emmigrating soon, or not too distant future, take some advice from me and send some money over now.

If it improves, good for you, send some more if you have, rinse repeat if the time is right/ when required.. if not, you gained some %, better than a kick in the teeth.

P.S I've been playing the exchange game for last 15 years between UK and SA, and made a good few bars (in both directions) in exchange conversions by watching the rates frequently and taking prompt action when safe to do so.
 
Last edited:
Top