During the last 3 weeks the Rand is weakening badly, I would like to know what's going on again but can't find any sources.
During the last 3 weeks the Rand is weakening badly, I would like to know what's going on again but can't find any sources.
I wanted to post a thread asking the exact same question. Dollar is at R7.80 odd. Few weeks ago it was R6.70 odd. Is there a war going on that I don't know about?
well this morning the spot rate is 8.26, not good at all, think i will go close to R9 by next week. I think it has to do with the Greek's no able to pay their debt
The R/$ rate is volatile just saw a rate of 8.18 on Moneyweb. What is worrying me is the trend. Now I will look at all the imported things I wanted to buy and see who has them in stock at the old rates.
Only stress when you can change the outcome!
I actually did post something similar suggesting markets "especially small markets" are under attack from lager companies. But I was treated with contempt so I abandoned it. Basically as one can see low risk loaners just became high risk again and large companies are moving towards downscaling thus heavy job losses can be expected.
That said our famous youth leader is not helping as the local media reported, apparently there are plans to organise some kind of action for what can be considered as "land reform" and or nationalizing of resources. Clearly this will have a negative effect on investors. How far it will go is in the hands of our ruling parties.
That said our exports are not doing so hot especially on fruits and the like again adding strain on our weakening economy. The next two months is going to be interesting...
Another factor I wish to add is our banks are not getting enough "Safe loans" out to stabilise growth against "bad loaners" that is considered a massif loss at the moment "Even still today" recovering is a slow process from when it started.
peace is a state of mind
Disclaimer: everything written by me can be considered as fictional.
So basically we're screwed? Another Zimbabwe?
Markets go up and then down. Just concentrate on the business keep stock and expenses low.
With the new traders using fancy software to trade the swings will get more exaggerated.
There is little you can do, so keep the risky decisions to a minimum until this stabilises.
Only stress when you can change the outcome!
In this case broadening one's horizon is a good thing, market strategies for example will pan out. Keep your head low and your paying customers happy and you may avoid the crunch. Perhaps allow for some none essential "easy" value added services to be free of charge as a "promotion" and do market research on suppliers and Identify possible problems and or solutions. Example would be some suppliers love to use importing cost as an excuse so it would be a good idea to monitor them.
Other than that as IanF stated:
It is excellent advise.
peace is a state of mind
Disclaimer: everything written by me can be considered as fictional.
It's certainly been quite a slide for the Rand in the past month or so. And a clear sign that more money is going out than coming into SA right now.
I think this latest rapid slide is mostly due to the crunch(s) looming in the Eurozone rather than our politicians putting their foot in it. Investors start shunting funds to top up liquidity close to home, or even buy bargains on the major stock exchanges as the market over-reacts. Unfortunately that often means them liquidating their positions in SA to take advantage of opportunities elsewhere or shore up their cashflow in their local market.
Not much to do other than ride it out. I'm certainly not looking forward to what the fuel price is going to be like next month.
A little more worrying for the longer term is a more general, subtle trend that's been emerging for a little while already. For those who follow the buy/hold/sell ranking of shares, for a little while now when it comes to "investment into Africa" I think we're probably ranked a "hold" while Nigeria is being ranked a "buy." When the money comes back, it might not come our way this time around.
Participation is voluntary.
Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene Services
Has this got something to do with the beer money flowing out the country?
Excellence is not a skill; its an attitude...
wynn (23-Sep-11)
Did you like this article? Share it with your favourite social network.