Rand Dollar Long Drop Exchange Rate

[RuadRauFlessa]

Uncut diamonds are cheaper than cut diamonds. The more you cut them the more value added they become and more expensive.

You get paid say $10 for a wooden log while when you buy back a wooden toy train set its $10 for the set which is cut from 10% of the log.

Yes but in all likelihood the other 90% of that log is wasted by means of making the train set.

[hamin_aus]

Uncut diamonds are cheaper than cut diamonds. The more you cut them the more value added they become and more expensive.

And if we somehow acquired the skilled artisans and specialised equipment required to produce quality cut diamonds this will magically bring the cost of everything down?

We' still be a developing African nation with an unstable political infrastructure. Why do you think the Rand devalued like it did post apartheid? Why would a country moving from a one party oppressive (to most people) state to a democracy be so bad for the currency? Our economy is better now than it was back then, so what's keeping the Rand down

[CapNemo]

People talking about nationalisation like our learned friend that has his own dedicated thread on this forum

[StarPhoenix]

R6/$ I can live with. Anything higher puts a serious cramp in my gaming experience.

The Rand is taking a pounding and you're worried about luxury items? Seriously?

[StarBound]

Dude my only concern is my games and cost of living. Everything in SA is set on the internal Rand value. The other 70-90% of the stuff is set on exchange rates. And I see we are back at the R8 mark after 3 days.

[Anakha56]

Which means petrol is going through the roof next week...

*edit*

http://www.fin24.com/Economy/Motorists- ... e-20110930

Motorists hit by whopping fuel hike
Sep 30 2011 12:35
Fin24

Johannesburg - Motorists will be hit by another massive rise in the price of petrol next week.

The cost of 93 octane fuel will rise 37c/litre and 95 octane 36c/litre, bringing the cost of petrol inland to R10.54/litre and at the coast to R10.24/litre, said the department of energy on Friday.

Diesel prices will rise by at least 35c/litre, illuminating paraffin by 30c/l and LP gas 62c/kg.

Although global prices for petrol, diesel and paraffin have gone down, SA has been hit by the huge increase due to a weaker rand.

The average rand/dollar exchange rate was R7.56/$ compared to R7.05/$ during the previous month, the department said.

In addition, the margin on all grades of petrol will increase by 4c/l to 85.2c/litre from next Wednesday.

This hike is necessary to cater for wage increases of 9% this year for service station industry staff agreed between unions and the Petroleum Retailers Alignment Forum.

[StarBound]

Unfortunately the 4c is for wage increases only and does not cover running costs. Expect a later increase to this aswell. I'm not going into the N1 N2 toll road stuff. Built, paid for and maintanence included in the fuel price and you start charging a toll for a road which you cant explain why its there other than needing an extra income source but effects everything going onto it.

[StarBound]

Up up up it goes, where it stops ...**** knows.

[Anakha56]

http://www.fin24.com/Markets/Currencies ... e-20111125

Rand withers as investors flee
54 minutes ago
Reuters

Johannesburg - The rand was on the back foot against the dollar early on Friday and was poised to close the week at its weakest level in two and a half years as investors filed out of emerging markets they perceived as risky.

Government bonds are being sold off in the bleak trading environment.

The rand fell to a new 2011 low this week at R8.61 to the dollar, and a deteriorating outlook for the global economy is pushing risk-averse investors into short-term and traditionally haven securities such as the dollar.

By 06:30 GMT, the rand had lost 0.6% to R8.5419 to the dollar, from a R8.4910 close on Thursday.

Yields on government paper were at seven-month highs at 8.725% on the 15-year issue and the four-year bond was testing the psychologically key 7% area.

Auction results of inflation-linked bonds are due at 09:00 GMT and yields are likely to continue the lower trend as inflation hit the central bank’s target at 6% in October.

“Bets are off at the moment. We’re seeing a lot more scurrying for safety,” said Paul Chakaduka of Global Trader.

“The biggest worry is Germany failing to get a subscription for their bonds. It was very disappointing and in that a lot of people have indicated they're looking for higher yields but not looking to take on any further risk on sovereign debt until a solution in Europe," Chakaduka said.

German bond prices rose this week after a poorly subscribed indicated that investors are wary of debt from one of Europe’s firmest economies.

Finance Minister Pravin Gordhan and Deputy Nhlanhla Nene are due to speak at around 17:30 GMT and could give insights on South Africa’s economic prospects in light of the eurozone credit crisis.

And during the Steam huge sale...

[Prime]

Why would you want to invest in a country that passes laws to protect corrupt officials when they steal your money?

[Hman]

I need some enlightenment here. How is it that when the european economy suffers the rand drops against european currencies as well as the dollar. Then when the american economy suffers the rand drops again against the european currencies and the dollar.

How does this work? A logically thinking person would expect that if another country's economy goes belly-up their currency would falter against yours, why does the rand defy all logic?

So, can someone why and how this happens?

[D3PART3D]

The way I understand it, Europe is SA's main trading partner, they invest a lot of money with us but consider us a risk and thus we're the first place they pull out of when they're scared. When they pull their money, not only does the rand weaken, but they will usually move those funds into the world's reserve currency because it is (supposedly) safer, making the dollar even stronger. (Currency is under the supply/demand law too so a trade imbalance affects value)

No idea about the American economy.

//uber-noob who hopes he knows what he is talking about.

[StarBound]

Yeah I see we dropped 50c over the past 3 days?