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Read the WELCOME ALL BMWFANATICS post.
ZAR taking a dump...
- Thread starter MaX
- Start date
peanut125i
Active member
Tbh, I think Zuma damaged himself more than anything else. Hopefully everyone will finally see what an idiot he is and what makes me happy is that he crumbled to pressure and did not go the dictator route and stuck to his choice of last week.ChefDJ@TheFanatics said:
Lol, that comment made my day.MaX said:
worst part is predictions say it is not going to get better any time soon...
Bayn46 said:
So this is what is going to happen:
1. End of this month, they are going to hike interest rates again to try and kerb the rand (which will obviously not work)
2. They are probably going to hammer us with a VAT increase
3. Sin tax is going to get moered
4. They are probably going to increase the Super Tax even more
Then, when OPEC is done playing their games, and trust me, they are playing games, brent will jump back to around 100USD a barrel and we will be looking at R20+ a liter of fuel. That + having to import food at USD rate due to drought etc will push inflation into the red which would require more interest rate hikes. This would mean the people of the country would want more money because they cant afford petrol or food, which means more strikes, which means more production losses, which means they need to hike prices to stay in green pushing inflation even harder, leading to more interest rate hikes... Going to be a great year
Bayn46
Active member
I feel like VAT will happen last because they want to hide what they can from their voters, even though a VAT increase would do a world of good in terms of generating funds.MaX said:
Fuel levy will also be on the cards. But in between all of this, we still have plenty spare cash for poorly structured nuclear deals and ridiculous government spending habits.
ChefDJ
///Member
Rand hits R17.99 to US Dollar
South Africa’s currency has hit a new low against the US dollar, continuing its downward spiral.
South Africa’s currency has hit a new low against the US dollar, continuing its downward spiral.
According to Reuters, late Sunday night – as Asian markets opened – the rand tanked to as low as R17.99 to the US dollar before pulling back to R17.25.
In trade on Monday morning, the rand was trading at R16.72 to the dollar – a new record low, since hitting its weakest point on Friday.
According to reports, the reason behind the latest dip is Japanese sellers – who are selling rand for dollars.
Analysts warned that the rand is currently at the mercy of external factors – most notably, trading circumstances in Asian markets – and that there may be worse to come.
Economist Mike Schussler from Economists.co.za sketched a grim scenario for the South African economy should the rand lose 20% of its value against the greenback in 2016.
Last year the rand gave up 25.9% of its value.
“If the rand should fall just another 20% over the next year… by the beginning of 2017 a dollar would cost R20,” he said.
Source
:thumbdo::thumbdo::thumbdo:
South Africa’s currency has hit a new low against the US dollar, continuing its downward spiral.
South Africa’s currency has hit a new low against the US dollar, continuing its downward spiral.
According to Reuters, late Sunday night – as Asian markets opened – the rand tanked to as low as R17.99 to the US dollar before pulling back to R17.25.
In trade on Monday morning, the rand was trading at R16.72 to the dollar – a new record low, since hitting its weakest point on Friday.
According to reports, the reason behind the latest dip is Japanese sellers – who are selling rand for dollars.
Analysts warned that the rand is currently at the mercy of external factors – most notably, trading circumstances in Asian markets – and that there may be worse to come.
Economist Mike Schussler from Economists.co.za sketched a grim scenario for the South African economy should the rand lose 20% of its value against the greenback in 2016.
Last year the rand gave up 25.9% of its value.
“If the rand should fall just another 20% over the next year… by the beginning of 2017 a dollar would cost R20,” he said.
Source
:thumbdo::thumbdo::thumbdo:
Right, so after they stole some more money from us with the "aggressive" interest rate hike, the rand retreated below R16 to the dollar. Newspapers were applauding SARB for the move whilst pointing at the rand sitting around R15.89... Since then, 2 more articles featured about Zooma giving his comrades money from state coffers including one to the tune of R1.7bn. So of course, like Zooma would say, the market "overreacted" and now we are worse off than before the hike :ty:
Its like one of the FNB economists said, trying to fix supply side inflation with interest rate hikes is like pushing a rope... Well done comrades, loot dem coffers harder, your term is almost over!
Its like one of the FNB economists said, trying to fix supply side inflation with interest rate hikes is like pushing a rope... Well done comrades, loot dem coffers harder, your term is almost over!
