Rand exchange rate

[Morticia]

Ahh the good old days of ZAR0.50 = US$1........

[Wolf]

and the weakening goes on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on and on

It is incredible. Would be better for me to move back to Austria and leave this South African disaster behind me.

[Wolf]

I can't f****** believe what happened within the last 3 hours.

How am I supposed to afford this sh**? I will go bankrupt before the business even started.

[Dave A]

You're just going to have to charge 40-50% more for your product...

Obviously the capital outflow is not over yet.
What was our all time low? About R13.50 to $1, I think.

[Wolf]

and how many potential clients will I lose because of the higher price?

But I have seen the pound went down a bit again.

And btw, do all the banks have the same rate at a certain time or do I have to compare their rates before I make the transfer?

[Dave A]

I think each bank handles their own forex transactions, so there is a possibility of rate differences. I'm uncertain of the prospects of being given a binding rate before the transaction is processed, though. When depositing foreign funds, my experience is that they'll only give an indication as to the final rate. I end up being stuck with whatever rate they end up transacting at. But maybe I don't make enough noise or the amounts aren't enough to fight about.

It'll be interesting to hear your experience once you get there.

[duncan drennan]

I am a little bit irritated with one of my suppliers. I used them instead of buying directly via a credit card transaction. The quote they gave me was long before the volatility and the purchase order was given on the same day. Now they want to charge me based on the cost when it landed. We'll see what price they want to charge....

[daveob]

I would say that if you have a quote, and it's dated ( and preferably valid for x number of days), then that's the price you should pay.

You asked for the quote, they supplied it, you ordered, they supply, you pay the quoted price.

Now if the quote says something about "subject to US$ exchange rate applicable on the day of landing" then that's a different story.

[Yvonne]

Our IT company has the same problem, their supplier's now refuse to permit a quote to be valid for ANY period of time, the argument it that he has to charge the current exchange rate, regardless of when he purchased his stock, as this is now the cost of his "replacement" stock!

Have you ever heard of a reduction in a quote because the exchange rate of the replacement stock was going to be less due to a currency fluctuation?

Yvonne

[Wolf]

Never heard about something like this. Either they quote in the currency of origin or in Rand. If they quote in Rand they should calculate with a rate that mustn't be corrected due to fluctuation. If the quotation doesn't say anything that daveob said, then I would insist on getting the quoted price. Everything else is ridiculous and pathetic.

[Wolf]

Fate is with me!

Payment will be done on monday. Rate is logged in at 17.4. If it stil drops like this I will renegotiate.

[Dave A]

Good luck!

I'd better start paying a little attention to the GBP too - my wife is wandering over there for ten days pretty soon.

[Dave A]

Wow!

R44 billion out so far this month.

RMB analysts agreed that the rand is in for another tough day.

"Not helping is foreign selling of local portfolio assets has accelerated, now totalling R44 billion for the month to date. Unless this drops off pretty soon the rand is in serious trouble - especially as none of the budget speech, the financial stability report or Governor Mboweni's comments last night showed any indication of pending action by the authorities.
full story from Business Report here

No wonder the Rand is all over the park!

[Wolf]

[duncan drennan]

The quote they gave me was long before the volatility and the purchase order was given on the same day. Now they want to charge me based on the cost when it landed. We'll see what price they want to charge....

So the price has increased around 17%. I'm a little unsure what leverage I have to bargain the price down a bit, after all I need those components soon - any thoughts?