Results 1 to 8 of 8

Thread: exchange rate

  1. #1
    Suspended
    Join Date
    Oct 2007
    Posts
    2,346
    Thanks
    0
    Thanked 254 Times in 209 Posts

    exchange rate

    i was looking at a graph of the exchange rate since last year and noticed a steady decline...

    what do you think the chances are that it will go below R4 or even as low as 1 to 1 anyone have experience with this type of thing.

    i tell you why i want to spend R100 000 on a piece of equipment but i am not in a hurry to buy it...in fact i am watching the exchange rate to see how low it will drop.

    just think if it did drop to 1 to 1 i could buy the same piece of equipment for R14000 that is a huge saving (R84000)

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Compared to USD, I assume.

    My experience is that since 1994 the Rand strengthens slowly and weakens fast, but there isn't much on the short term horison to suggest the current trend will change sharply.

  3. #3
    Suspended
    Join Date
    Oct 2007
    Posts
    2,346
    Thanks
    0
    Thanked 254 Times in 209 Posts
    yip the USD

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Well then - if we ever get to R4 to the USD, it's probably still quite a long way away

  5. #5
    Junior Member dcs's Avatar
    Join Date
    Nov 2010
    Location
    Cape Town
    Posts
    15
    Thanks
    1
    Thanked 5 Times in 4 Posts
    Hmmm. I reckon that if the USD were to fall against the rand that dramatically then it will fall against other currencies as well. Impact on the cost of the equipment will be inflationary and you may end up paying more in Rands despite advantageous exchange rate. Order it now and fix the price then defer shipment till the USD is really low!

    David

  6. #6
    New Member Steven's Avatar
    Join Date
    Jun 2009
    Location
    Hoedspruit
    Posts
    5
    Thanks
    0
    Thanked 1 Time in 1 Post
    I reckon now's a good time to buy ... the rand hasn't been this strong for ages and whilst the upward trend might still continue for a while, over time, it'll probably start slipping again against currencies like the USD, Euro and GBP.

  7. #7
    Diamond Member
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    6,329
    Thanks
    426
    Thanked 978 Times in 795 Posts
    The goverment will never let the exchange rate drop that low. It would a devistating effect on our exports.

  8. #8
    Gold Member Martinco's Avatar
    Join Date
    Oct 2008
    Location
    Rustenburg
    Posts
    927
    Thanks
    175
    Thanked 136 Times in 108 Posts
    Quote Originally Posted by adrianh View Post
    The goverment will never let the exchange rate drop that low. It would a devistating effect on our exports.
    I agree......read the thread on the Reserve Bank and it should be quite clear.

    I have a friend that exports 95% of his product and already he is sweating !

    Murdock, if you were in the money game then I would say yes but if you do not really specialize in that and you do have the money...........buy the product now ! I have been caught on several occasions and as Dave said, the Rand weakens much quicker than strengthening.
    Martin Coetzee
    Supplier of Stainless Steel Band and Buckle and various fastening systems. Steel, Plastic, Galvanized, PET and Poly woven.
    We solve your fastening problems.
    www.straptite.com

    You may never know what results will come from your actions, but if you do nothing, there will be no results... Rudy Malan 05/03/2011

Similar Threads

  1. [Opinion] PPI rate causes!
    By IanF in forum Business Finance Forum
    Replies: 4
    Last Post: 18-Dec-08, 01:19 PM
  2. Rand exchange rate
    By Dave A in forum Business Finance Forum
    Replies: 44
    Last Post: 30-Oct-08, 04:05 PM
  3. Rand/Pound exchange rate.
    By viper357 in forum Business Finance Forum
    Replies: 5
    Last Post: 17-Oct-08, 02:13 PM
  4. Rates of Exchange
    By Graeme in forum Business Finance Forum
    Replies: 2
    Last Post: 03-Aug-08, 08:44 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •