Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Curbing the Rand

Reply
Not applicable
At what stage, if any, will the Reserve Bank step in and put a leash on the strong Rand?
0 Kudos
11 REPLIES 11
Not applicable
same question was asked in 2003, to which the answer was never. Now that we have a populist in power, maybe the unions will be able to apply increased pressure? who knows
0 Kudos
Not applicable
Hopefully never. Free floating economy is less volotile to speculators. You start protecting your currency the big guys with more money than our annual GDP turnover start to target our reserves and deplete the reserves to fast or something along those lines. Simon you have all the technical definitions to explain better. Right now Reserve bank has inflation mandate not currency mandate.
0 Kudos
Not applicable
Its just sentiment (Risk appetite, MTN/Bharti, etc). The long term fundamentals are all pointing to a weakening currency. No/low demand for our exports, dismal local economy (manufacturing/production declines across the board) and the lingering threats of inflation. When the sentiment wanes, the ZAR will weaken to R9.20 (USD) and R15.80 (GBP) based on PPP. Remember the ZAR has been a depreciating currency at a rate of 10-15% p.a. since 1985.
0 Kudos
Not applicable
funny, thats what they said in 2003 as well - and then we hit R6 to the dollar
0 Kudos
Not applicable
This tregth reaches R6/dollar again i am buy a boat load of pounds cause the reverse will ensure I get a great holiday in Europe when its back at 15:1 ;-) and I can stash my surplus in my secret jamacian account (ganga1) ;-) ;-)
0 Kudos
Not applicable
Followed by 7,8,9,10 leading into 2008. Its easy to get stuck focussing on short term movements, the ZAR is probably one of the most volatile currencies in the world. If a strengthening currency bothers you that much, just sell a few currency futures.
0 Kudos
SimonPB
Valued Contributor
they won't ..
0 Kudos
Not applicable
0 Kudos
Wizard
Super Contributor
The Reserve Bank has no control over the currency exchange. It's been proven time and again ..
0 Kudos
Not applicable
If I remember correctly, the last time the rand got too strong, Tito uttered moaning cries to international ears, and as a result the rand weakened
0 Kudos
Wizard
Super Contributor
When after 2 years... just shows u what the Rand thinks of him....ignores him flat!!
0 Kudos