What's happening to the Rand lately?

[Wolf]

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.

[Perform Computers]

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?

[michelle1]

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

[IanF]

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.

[tec0]

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.

[Perform Computers]

So basically we're screwed? Another Zimbabwe?

[IanF]

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.

[tec0]

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:

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.

It is excellent advise.

[Dave A]

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.

[Blurock]

Has this got something to do with the beer money flowing out the country?

[Justloadit]

Blurock, You mean to New Zealand? I wouldn't be surprised.

Jokes aside, is there not a deal going down between SAB and Forsters in OZ for something like R10billion?

[tec0]

Well fact is South African bylaws killed the free market and free trade along with a few parts of the consecution. Along with the new call for resource reform and the like will inevitably push investors away.

So if your company is big enough then rather go to the investors on more stable grounds else-ware. As the bylaws become more aggressive we may soon find companies pulling out completely. And why not, the fact is one wouldn't invest in South African companies at the moment. One cannot higher the people one wish to higher, one is forced to select a partner one don't need so that one can do business? It sounds like bad joke!

But joke or not, the Euro markets are looking for low risk safe investments and Canada comes to mind as they need investors and is actually resource rich so I see new connections in that aria soon.

Riding it out yes I have to agree with it. But I will start looking to invest in companies outside South Africa because one cannot work within a monopoly anymore. it is impossible.

[Blurock]

Actually referred to the Fosters deal which had now been concluded.

Will the Oz now be exposed to Castle?

[Pap_sak]

The slide started when my wife and I went on holiday to Mauritius. I now have proof that her weekly shopping sprese have been propping up this countries ecconomy!