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Read the WELCOME ALL BMWFANATICS post.
ZAR taking a dump...
- Thread starter MaX
- Start date
AfricanShaun
New member
maximus said:MaX said:
Yeah well with inflation/value of money and all that jazz..
There's a picture of I think Wimpy's menu price in 1983, a burger meal was like R2.40 or something like that.
oh my word.....
not only the price, the food look much better than today's wimpy too!
maximus
///Member
R12.0941 @ 2015-03-06 15:23 UTC
FOCUS: Robust US payrolls push rand to weakest level since December 2001
by Madeleine van Niekerk , 06 March 2015, 17:17
http://www.bdlive.co.za/markets/201...82BB995B85423C7F67D32C9600FCB01.present1.bdfm
THE rand fell through R12 to the dollar late on Friday after US payrolls increased more than market expectations, with the economy there adding 295,000 jobs in February, from an expected 240,000.
The US unemployment rate fell to 5.5% from 5.7% in January.
At 4.58pm, the rand was trading at R12.04 against the dollar, a level last reached in December 2001, from Thursday’s close of R11.83.
Against the euro the rand was at R13.08 from a previous close of R13.05 and at R18.16 against the British pound from Thursday’s close of R18.03.
Bidvest Bank chief forex dealer Ion de Vleeschauwer said the rand would probably decline to R12.50 to the dollar "very soon".
"Money is flowing into the US so the dollar is stronger. The Turkish lira has collapsed to record lows, while the rand is following all the emerging-market currencies to much weaker levels," Mr de Vleeschauwer said.
"All the commodity prices are lower. Gold is down more than $20. It is all about the dollar. The US will probably hike interest rates in next couple of months causing even more money to flow into their economy."
Treasury One chief dealer Wichard Cilliers said the rand was at R12 to the greenback on "the back of the much stronger than expected nonfarm payrolls in the US — 60,000 more jobs than expected were created — which caused the dollar to be on the front foot.
"South African bonds also dropped with the R186s losing 18 basis points to 7.94%, indicating that foreigners are selling out of our local bond market and buying into US markets," Mr Cilliers said.
"We see the rand weakening further next week, as emerging-market currencies will remain under pressure in the short term," he said.
FOCUS: Robust US payrolls push rand to weakest level since December 2001
by Madeleine van Niekerk , 06 March 2015, 17:17
http://www.bdlive.co.za/markets/201...82BB995B85423C7F67D32C9600FCB01.present1.bdfm
THE rand fell through R12 to the dollar late on Friday after US payrolls increased more than market expectations, with the economy there adding 295,000 jobs in February, from an expected 240,000.
The US unemployment rate fell to 5.5% from 5.7% in January.
At 4.58pm, the rand was trading at R12.04 against the dollar, a level last reached in December 2001, from Thursday’s close of R11.83.
Against the euro the rand was at R13.08 from a previous close of R13.05 and at R18.16 against the British pound from Thursday’s close of R18.03.
Bidvest Bank chief forex dealer Ion de Vleeschauwer said the rand would probably decline to R12.50 to the dollar "very soon".
"Money is flowing into the US so the dollar is stronger. The Turkish lira has collapsed to record lows, while the rand is following all the emerging-market currencies to much weaker levels," Mr de Vleeschauwer said.
"All the commodity prices are lower. Gold is down more than $20. It is all about the dollar. The US will probably hike interest rates in next couple of months causing even more money to flow into their economy."
Treasury One chief dealer Wichard Cilliers said the rand was at R12 to the greenback on "the back of the much stronger than expected nonfarm payrolls in the US — 60,000 more jobs than expected were created — which caused the dollar to be on the front foot.
"South African bonds also dropped with the R186s losing 18 basis points to 7.94%, indicating that foreigners are selling out of our local bond market and buying into US markets," Mr Cilliers said.
"We see the rand weakening further next week, as emerging-market currencies will remain under pressure in the short term," he said.
maximus
///Member
SA Rand value: 1994 – 2015
By Staff WriterMarch 12, 2015
http://businesstech.co.za/news/general/82273/sa-rand-value-1994-2015/
The South African rand traded at its worst levels since 2002 this week. Put another way, the last time the rand hit such a low, the price of petrol was under R4.00 per litre in Gauteng.
The local currency traded at R12.19 to the greenback on Thursday (12 March), having slumped to a 13-year low of R12.38 to the dollar on Wednesday.
According to data from Trading Economics, the South African rand has averaged R4.97 to the dollar between 1972 and 2015, reaching an all time high of R12.45 in December of 2001 and a record low of R0.67 in June of 1973.
The rand is one of several currencies to hit new lows against a rampant dollar, following positive employment data out the US last week.
The Brazilian real has pushed to almost 11-year lows; the Japanese yen is at a eight-year low; the Swedish krona is down to a six-year low and the Euro is teasing parity with the dollar at a new 12-year low.
According to Reuters data, concerns out of Europe and Asia – particularly doubts over Greece’s debt talks, and deflationary pressure in China – have also weighed emerging market currencies down.
The South African rand faced a rocky 2014, and has continued to slide in 2015, breaking through several resistance levels.
While the currency is currently at the mercy of global markets, a number of local factors have also contributed to its weakened position.
Economists laid the blame at the feet of an increased current account deficit, insufficient local savings, weak GDP growth and the ongoing power crisis.
In 2014, South Africa experienced its worst year against the US dollar since the peak of the global economic crisis of 2008 and 2009.
What a weak rand means
A devalued rand has many unfortunate knock-on consequences for SA consumers. As the rand weakens, so interest rates rise, hurting small businesses, home owners and indebted citizens.
The price of oil, and therefore the price of petrol also increases, which has an additional inflationary effect, including higher food prices.
Here is a look at the rand versus the dollar (annual averages) since 1994.
ZAR R12.34 -> USD $1
GBP 1 -> R18.34
By Staff WriterMarch 12, 2015
http://businesstech.co.za/news/general/82273/sa-rand-value-1994-2015/
The South African rand traded at its worst levels since 2002 this week. Put another way, the last time the rand hit such a low, the price of petrol was under R4.00 per litre in Gauteng.
The local currency traded at R12.19 to the greenback on Thursday (12 March), having slumped to a 13-year low of R12.38 to the dollar on Wednesday.
According to data from Trading Economics, the South African rand has averaged R4.97 to the dollar between 1972 and 2015, reaching an all time high of R12.45 in December of 2001 and a record low of R0.67 in June of 1973.
The rand is one of several currencies to hit new lows against a rampant dollar, following positive employment data out the US last week.
The Brazilian real has pushed to almost 11-year lows; the Japanese yen is at a eight-year low; the Swedish krona is down to a six-year low and the Euro is teasing parity with the dollar at a new 12-year low.
According to Reuters data, concerns out of Europe and Asia – particularly doubts over Greece’s debt talks, and deflationary pressure in China – have also weighed emerging market currencies down.
The South African rand faced a rocky 2014, and has continued to slide in 2015, breaking through several resistance levels.
While the currency is currently at the mercy of global markets, a number of local factors have also contributed to its weakened position.
Economists laid the blame at the feet of an increased current account deficit, insufficient local savings, weak GDP growth and the ongoing power crisis.
In 2014, South Africa experienced its worst year against the US dollar since the peak of the global economic crisis of 2008 and 2009.
What a weak rand means
A devalued rand has many unfortunate knock-on consequences for SA consumers. As the rand weakens, so interest rates rise, hurting small businesses, home owners and indebted citizens.
The price of oil, and therefore the price of petrol also increases, which has an additional inflationary effect, including higher food prices.
Here is a look at the rand versus the dollar (annual averages) since 1994.
ZAR R12.34 -> USD $1
GBP 1 -> R18.34
maximus
///Member
SA rand among most undervalued currencies in the world
By Staff Writer March 29, 2015
http://businesstech.co.za/news/inte...ong-most-undervalued-currencies-in-the-world/
South Africa’s currency is largely undervalued and should be trading at closer to R5.30 against the dollar, than R12, the Big Mac Index shows.
This is against a backdrop of the rand’s weakness over the past few weeks, with the currency pushing record lows against the greenback.
The Big Mac index is one initiative, created by The Economist, that aims to measure whether currencies are at their “correct” level.
It is based on the theory of purchasing-power parity (PPP) – the notion that, in the long run, exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a Big Mac burger) in any two countries.
The Bic Mac is selected for comparison as the popular fast-food meal is widely available across the world, and remains fairly consistent in pricing; however, it is by no means an exact science.
“Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible,” The Economist said.
The index has however, become a global standard, included in several economic textbooks while also becoming the subject of at least 20 academic studies, the group noted.
South Africa’s “real” currency value
In the USA, a Big Mac sells for $4.79 as of January 2015 – in South Africa the price is $2.13 (R25.50).
This means that a South African in the USA would expect to pay R57.46 for the same product that costs R25.50 locally.
In order to reach pricing parity, the value of the South African currency would have to sit at R5.32 to the dollar.
This shows that the rand is undervalued by 57%.
Data from the World Bank points to similar PPP values, showing that between 2010 and 2014, South Africa’s currency carried an average PPP trade value of R5.11 when purchasing its selected basket of goods.
According to the Economist, a fairer measure of a currency’s fair value would be to look at the relationship between prices and GDP per person.
“The difference between the price predicted by the red line for each country, given its income per person, and its actual price gives a supersized measure of currency under- and over-valuation,” it said.
According to the World bank, South Africa has a GDP per capita of $12,506.70 (in international or PPP dollars), versus the US GDP per capita of $53,042.00.
Most undervalued currencies in the world (PPP – Big Mac Index)
A currency is considered undervalued when its value in foreign exchange is less than it “should” be based on economic conditions. Currency value isn’t determined objectively, however, and may be undervalued due to a lack of demand, even if a country’s economy is strong.
According to South African economists, South Africa’s economy is not strong, though. The country is currently in an extended phase of slowed economic growth and a widening trade deficit – all the while juggling a power crisis and number of labour-related social issues.
By Staff Writer March 29, 2015
http://businesstech.co.za/news/inte...ong-most-undervalued-currencies-in-the-world/
South Africa’s currency is largely undervalued and should be trading at closer to R5.30 against the dollar, than R12, the Big Mac Index shows.
This is against a backdrop of the rand’s weakness over the past few weeks, with the currency pushing record lows against the greenback.
The Big Mac index is one initiative, created by The Economist, that aims to measure whether currencies are at their “correct” level.
It is based on the theory of purchasing-power parity (PPP) – the notion that, in the long run, exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a Big Mac burger) in any two countries.
The Bic Mac is selected for comparison as the popular fast-food meal is widely available across the world, and remains fairly consistent in pricing; however, it is by no means an exact science.
“Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible,” The Economist said.
The index has however, become a global standard, included in several economic textbooks while also becoming the subject of at least 20 academic studies, the group noted.
South Africa’s “real” currency value
In the USA, a Big Mac sells for $4.79 as of January 2015 – in South Africa the price is $2.13 (R25.50).
This means that a South African in the USA would expect to pay R57.46 for the same product that costs R25.50 locally.
In order to reach pricing parity, the value of the South African currency would have to sit at R5.32 to the dollar.
This shows that the rand is undervalued by 57%.
Data from the World Bank points to similar PPP values, showing that between 2010 and 2014, South Africa’s currency carried an average PPP trade value of R5.11 when purchasing its selected basket of goods.
According to the Economist, a fairer measure of a currency’s fair value would be to look at the relationship between prices and GDP per person.
“The difference between the price predicted by the red line for each country, given its income per person, and its actual price gives a supersized measure of currency under- and over-valuation,” it said.
According to the World bank, South Africa has a GDP per capita of $12,506.70 (in international or PPP dollars), versus the US GDP per capita of $53,042.00.
Most undervalued currencies in the world (PPP – Big Mac Index)
A currency is considered undervalued when its value in foreign exchange is less than it “should” be based on economic conditions. Currency value isn’t determined objectively, however, and may be undervalued due to a lack of demand, even if a country’s economy is strong.
According to South African economists, South Africa’s economy is not strong, though. The country is currently in an extended phase of slowed economic growth and a widening trade deficit – all the while juggling a power crisis and number of labour-related social issues.
Well done Mista President and team! Push up the interest rates more, seems to be working a treat!
http://m.news24.com/fin24/Economy/Rocky-road-for-rand-with-R13-breach-expected-soon-20150820
http://m.news24.com/fin24/Economy/Rocky-road-for-rand-with-R13-breach-expected-soon-20150820
Crash_Nemesis
///Member
I'm going in November... =( This is going to burn my ass... Not to mention all the engine parts I need to order from Vac.
eish....
eish....
