pastapouch Posted September 22, 2011 Share Ya, why the Rands going down... just heard on 702 that the Manufacturing Sector is in termal downhill motion. Because everything is in ... China. Well done to the unions. Link to comment Share on other sites More sharing options...
TNT1 Posted September 22, 2011 Share wait a couple of weeks to give the Rand a chance to rebound? Link to comment Share on other sites More sharing options...
Taps Posted September 22, 2011 Share I need to buy some capital equipment (imported) but not knowing what the rand will be doing over the next few months is a concern. I'll be better placed in a few months to spend the ronds but probably pay a sh#tload more? Link to comment Share on other sites More sharing options...
ROCKITRIDEIT Posted September 22, 2011 Share I agree, but its meaningless unless its reinvested, and its not. Companies are sitting on huge cash stockpiles, but unless they reinvest it in some meaningful way, its just pretty on the balance sheet, it means nothing to the economy. agreed, either reinvest the cash or return it to shareholders Edited September 22, 2011 by touristvisa Link to comment Share on other sites More sharing options...
Garfield2010 Posted September 22, 2011 Share Dividents!!! Link to comment Share on other sites More sharing options...
jatho Posted September 22, 2011 Share Really enjoying this post, makes for a nice change on some of the really stupid posts I've seen on thehub of late (Gay post takes the cake hands down IMO) Touristvisa, your comments are bang on the money and the reason for the rapid weakening is because we're classified as an emerging market and investors are looking for lower risk investments, local politics have nothing to do with the weakening, not yet at least, looking for someone to blame, Greece is your guy. If you're an importer (as I am) or looking to purchase anything in USD the trickiest question will be do you wait for the ZAR to gain some ground, or do you buy before it slides even more (and risk having uncompetitive prices)? unfortunately, I think at this point, people would only be able to speculate and its nothing more than a gamble. Link to comment Share on other sites More sharing options...
Garfield2010 Posted September 22, 2011 Share I need to buy some capital equipment (imported) but not knowing what the rand will be doing over the next few months is a concern. I'll be better placed in a few months to spend the ronds but probably pay a sh#tload more? Who knows??? I know the Banks have a forex protector kind of facility so in other words you can order the import but only pay in three months time and this "insurance" will protect you against currency fluctuations so you pay what the rate is today after three months. You could also consider getting an official quote from the overseas guys as in certain cases the quote is valid fro a certain maount of time (if you can get them to quote you in Rands of course!!) and then hold them too it in three months time. Link to comment Share on other sites More sharing options...
jatho Posted September 22, 2011 Share Who knows??? I know the Banks have a forex protector kind of facility so in other words you can order the import but only pay in three months time and this "insurance" will protect you against currency fluctuations so you pay what the rate is today after three months. You could also consider getting an official quote from the overseas guys as in certain cases the quote is valid fro a certain maount of time (if you can get them to quote you in Rands of course!!) and then hold them too it in three months time. And what happens if the rand is at 6.50 to the USD in 3 months time? I think you're describing forward cover here in which case you'd be obliged to take the currency at that rate, you can get out of it but not without paying a penalty, this is because the bank has to purchase the USD's to guarantee the rate so they need to recover their costs. Link to comment Share on other sites More sharing options...
Garfield2010 Posted September 22, 2011 Share I dont know !!   I have a stupid question for all your smart asses............ Japan's interest rate is 0% Ghana's interest is 29.5% (I think) So I take their Money Market would be around 20% at least? Why dont we lend money from Japan and put it in a MM account in Ghana? THey can have my Jack Russel as collateral (or is that in Korea?) Link to comment Share on other sites More sharing options...
krl747 Posted September 22, 2011 Share Who knows??? I know the Banks have a forex protector kind of facility so in other words you can order the import but only pay in three months time and this "insurance" will protect you against currency fluctuations so you pay what the rate is today after three months. You could also consider getting an official quote from the overseas guys as in certain cases the quote is valid fro a certain maount of time (if you can get them to quote you in Rands of course!!) and then hold them too it in three months time. You can hedge yourself forward with either a forward exchange contract or something like a participation forward. The later is a form of option structure that could assist you should the rand move on its current path. Link to comment Share on other sites More sharing options...
krl747 Posted September 22, 2011 Share I dont know !!   I have a stupid question for all your smart asses............ Japan's interest rate is 0% Ghana's interest is 29.5% (I think) So I take their Money Market would be around 20% at least? Why dont we lend money from Japan and put it in a MM account in Ghana? THey can have my Jack Russel as collateral (or is that in Korea?) Called carry trade. The only problem is that should the developed country start defaulting on debt, what happens to emerging markets? Greek bonds where trading at a yield of 70%. Would you buy some? Link to comment Share on other sites More sharing options...
Rob Mortimer Posted September 22, 2011 Share I know it is bad for the country but as my salary is US$ based I will get a healthy bonus this month. Somewhere in the region of ZAR 18,000, means I can make a big dent in our bond. +1  I'm in the same boat so not complaining at all Link to comment Share on other sites More sharing options...
Garfield2010 Posted September 22, 2011 Share  What next????????????? Edited September 22, 2011 by Garfield2010 Link to comment Share on other sites More sharing options...
The Guy in Pink Posted September 22, 2011 Share The changes in the exchange rate always leaves me with mixed feelings. 20% of my pay is caculated in US$ but paid in rands, so I have a bit of an increase coming this month. Lucky for me also I bought my Forex for the next trip to the DRC a few weeks ago so paid about R7/$ But I do buy a lot of stuff from CRC and other overseas shops, so the exchange rate will affect me soon there. Link to comment Share on other sites More sharing options...
AndreZA Posted September 22, 2011 Share I think we should blame the previous government. Link to comment Share on other sites More sharing options...
Caerus Posted September 22, 2011 Share Whatever happens I got my orders in, new XT brakeset come to Pappa Now the wait, doh. Link to comment Share on other sites More sharing options...
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