Trade report 09/07/2013
A strong euro is the main reason for the firmer rand in early Tuesday trade. The Eurozone is South Africa’s biggest trading partner and because of this the rand often tracks the euro. At 8am the rand was bid at R10.1287 to the dollar from Monday’s close of R10.1499 and Friday’s close of R10.1900. The USD-ZAR is expected to trade at 10.08-10.2000.
According to officials €3bn will be released to Greece, European ministers decided in a meeting in Brussels on Monday. The decision seeks to restore some financial calm to Greece and prevent another debt-crisis showdown at least until after German elections in September. The first €2.5bn will be paid to Greece later this month and the remaining €0.5bn in October.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rate. To know more about how we can help you Contact Us.
Tuesday, 9 July 2013
Monday, 8 July 2013
Investing offshore
Offshore investing is making investments in a country other than the investor’s country of residence, targeting benefits offered to investors by firms and governments across the globe. The challenge for an investor is to identify offshore investments that minimize risk exposure, realize high returns and reduce tax obligations in a legal manner.
In South Africa offshore investments above the 1 million rand discretionary allowance mark have to be legally recorded or he/she may face stiff fines or possible jail time from concealing these investments from the South African taxing authority SARS.
How does Offshore Investing Work?
With the help of certified professional financial entities like bankers, portfolio managers and finance brokers one can invest offshore. There is a series of different offshore investment options, including bond, equity and money market assets.
Many high net worth individuals set up offshore accounts. Typically this is done in order to save on taxes. There are quite a few countries that are famous tax havens, such as the Bahamas, the Cayman Islands, Switzerland, the Isle of Man and Bermuda. These tax havens have become popular offshore investment destinations.
It I important to note that there may be stringent and costly requirements for opening an offshore account. This may include a minimum amount to be maintained in the account, fees and owning property in the destination country.
Benefits of Offshore Investing
There are numerous benefits to investing offshore, these benefits include:
• The diversification of one’s investment portfolio.
• The privatization of several sectors in developing countries can be worthwhile offshore investment opportunities.
• Offshore investing may help in reducing taxes.
• Some of the offshore investment destinations guarantee confidentiality and in doing so protect their wealth and property from domestic issues and seizures.
Downsides of Offshore Investing
The downside of offshore investing is:
• Many tax agencies are tightening tax laws in their respective nations.
• Opening an offshore account can be expensive and may include high legal fees, registration fee and minimum balance to be maintained.
Sources:
http://www.investorwords.com/8657/offshore_investment.html#ixzz2WZTIPjOs
http://www.economywatch.com/investment/offshore-investing.html
In South Africa offshore investments above the 1 million rand discretionary allowance mark have to be legally recorded or he/she may face stiff fines or possible jail time from concealing these investments from the South African taxing authority SARS.
How does Offshore Investing Work?
With the help of certified professional financial entities like bankers, portfolio managers and finance brokers one can invest offshore. There is a series of different offshore investment options, including bond, equity and money market assets.
Many high net worth individuals set up offshore accounts. Typically this is done in order to save on taxes. There are quite a few countries that are famous tax havens, such as the Bahamas, the Cayman Islands, Switzerland, the Isle of Man and Bermuda. These tax havens have become popular offshore investment destinations.
It I important to note that there may be stringent and costly requirements for opening an offshore account. This may include a minimum amount to be maintained in the account, fees and owning property in the destination country.
Benefits of Offshore Investing
There are numerous benefits to investing offshore, these benefits include:
• The diversification of one’s investment portfolio.
• The privatization of several sectors in developing countries can be worthwhile offshore investment opportunities.
• Offshore investing may help in reducing taxes.
• Some of the offshore investment destinations guarantee confidentiality and in doing so protect their wealth and property from domestic issues and seizures.
Downsides of Offshore Investing
The downside of offshore investing is:
• Many tax agencies are tightening tax laws in their respective nations.
• Opening an offshore account can be expensive and may include high legal fees, registration fee and minimum balance to be maintained.
Sources:
http://www.investorwords.com/8657/offshore_investment.html#ixzz2WZTIPjOs
http://www.economywatch.com/investment/offshore-investing.html
Fresh two-week low
Trade report 08/07/2013
The rand reached a fresh 2-week low against the dollar in early Monday morning trade with the possibility of losing even further ground against the dollar as newly released US job data that has boosted chances the United States will soon pull back on its bond-buying program. The USD_ZAR is expected to trade at 10.15-10.3000.
In local news, Tuesday will mark the start of wage talks in the gold sector. Employers are keen to put a stop to the wildcat strikes that have plagued the mining industry over the last 18 months. Whilst the industry is facing its toughest times yet unions are demanding wage increases of 100%. The Chamber of Mines says that even though gold was at a record R509,783/kg in the fourth quarter of last year, 40% of the sector is either loss-making or marginal.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rate. To know more about how we can help you Contact Us.
The rand reached a fresh 2-week low against the dollar in early Monday morning trade with the possibility of losing even further ground against the dollar as newly released US job data that has boosted chances the United States will soon pull back on its bond-buying program. The USD_ZAR is expected to trade at 10.15-10.3000.
In local news, Tuesday will mark the start of wage talks in the gold sector. Employers are keen to put a stop to the wildcat strikes that have plagued the mining industry over the last 18 months. Whilst the industry is facing its toughest times yet unions are demanding wage increases of 100%. The Chamber of Mines says that even though gold was at a record R509,783/kg in the fourth quarter of last year, 40% of the sector is either loss-making or marginal.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rate. To know more about how we can help you Contact Us.
Thursday, 4 July 2013
No strong ZAR direction
Trade report 04/07/2013
There is no apparent reason to expect any strong directional movement in the ZAR for the day ahead. The ECB meeting held later this afternoon could generate some volatility, but the main focus point will remain on the US non-farm payrolls that are due for release tomorrow. The USD-ZAR is expected to hold to a range of 10.02-10.1500 for most of today.
In international news on Wednesday Portugal’s bonds plummeted, pushing 10-year yields above 8% for the first time since November 2012. The sudden bond weakness was a reaction on the resignation of two ministers that raised concerns of derailment of the government’s attempts to implement austerity measures.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
There is no apparent reason to expect any strong directional movement in the ZAR for the day ahead. The ECB meeting held later this afternoon could generate some volatility, but the main focus point will remain on the US non-farm payrolls that are due for release tomorrow. The USD-ZAR is expected to hold to a range of 10.02-10.1500 for most of today.
In international news on Wednesday Portugal’s bonds plummeted, pushing 10-year yields above 8% for the first time since November 2012. The sudden bond weakness was a reaction on the resignation of two ministers that raised concerns of derailment of the government’s attempts to implement austerity measures.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Wednesday, 3 July 2013
ZAR weakens on stronger USD
Trade report 03/07/2013
The USD-ZAR failed to continue on its downside break like many in the market were hoping. The USD strengthened overnight which can be attributed to a number of factors: firstky the expectation of strong US payroll numbers and the US markets closing early today. It is significant to note that the AUD is at its weakest level since September 2010 and falling. As the AUD is the barometer for other commodity currencies its weak value combined with the strong USD has proven to such pressure for the ZAR. The USD-ZAR is expected to trade at 9.95-10.1000 today.
In international news International Monetary Fund (IMF) have given Greece three days to reassure the rest of Europe that it could deliver on conditions of its international bailout in order to receive the next installment of aid, said Eurozone officials on Tuesday. A senior Eurozone official involved in the negotiations said that lenders were unhappy with the progress Greece has made to restore its economy.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
The USD-ZAR failed to continue on its downside break like many in the market were hoping. The USD strengthened overnight which can be attributed to a number of factors: firstky the expectation of strong US payroll numbers and the US markets closing early today. It is significant to note that the AUD is at its weakest level since September 2010 and falling. As the AUD is the barometer for other commodity currencies its weak value combined with the strong USD has proven to such pressure for the ZAR. The USD-ZAR is expected to trade at 9.95-10.1000 today.
In international news International Monetary Fund (IMF) have given Greece three days to reassure the rest of Europe that it could deliver on conditions of its international bailout in order to receive the next installment of aid, said Eurozone officials on Tuesday. A senior Eurozone official involved in the negotiations said that lenders were unhappy with the progress Greece has made to restore its economy.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Tuesday, 2 July 2013
Rand helped by overseas developments
Trade report 04/06/2013
Helped in large by developments overseas the ZAR performed better than expected yesterday. The USD withdrew slightly, platinum and gold prices rallied throughout the day and for the most part emerging market currencies like the rand were able to hold their own. The USD-ZAR is expected to trade at 9.900-10.0500 today.
On Monday US President Barack Obama tried to comfort European allies who were affronted by reports of US spying, but implied that all the world’s top intelligence services were involved in finding out the thinking of not only opponents, but also allies. Following a report in a German magazine that Washington is spying on European countries, the European Union is demanding an explanation and saying that if true, such surveillance was appalling.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Helped in large by developments overseas the ZAR performed better than expected yesterday. The USD withdrew slightly, platinum and gold prices rallied throughout the day and for the most part emerging market currencies like the rand were able to hold their own. The USD-ZAR is expected to trade at 9.900-10.0500 today.
On Monday US President Barack Obama tried to comfort European allies who were affronted by reports of US spying, but implied that all the world’s top intelligence services were involved in finding out the thinking of not only opponents, but also allies. Following a report in a German magazine that Washington is spying on European countries, the European Union is demanding an explanation and saying that if true, such surveillance was appalling.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
Monday, 1 July 2013
Rand steady against the dollar
Trade report 04/06/2013
In early Monday morning trade the rand was steady against the dollar, trading stronger than R10/$, the key psychological level. The stronger rand is due to the easing of investor fears about an early withdrawal of US stimulus. "Dollar/rand (is) pushing at the key R9.83/85 support level. A break would open up scope for a proper rand recovery but if the level holds, we could be trapped in a range for a while," said Rand Merchant Bank in a note to clients. The USD-ZAR is expected to trade at 9.84-10.0000.
In other local news South African Revenue Service customs and excise data on the country’s trade with non-Southern African Customs Union trading partners on Friday showed the trade deficit narrowed from R15bn in April to R11bn in May. A BDlive poll of economists surveyed had forecast a deficit of R11.3bn. Their forecasts ranged between a deficits of R9bn and R12bn. "This is an improvement, but still quite large," said Colen Garrow, Meganomics economist.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
In early Monday morning trade the rand was steady against the dollar, trading stronger than R10/$, the key psychological level. The stronger rand is due to the easing of investor fears about an early withdrawal of US stimulus. "Dollar/rand (is) pushing at the key R9.83/85 support level. A break would open up scope for a proper rand recovery but if the level holds, we could be trapped in a range for a while," said Rand Merchant Bank in a note to clients. The USD-ZAR is expected to trade at 9.84-10.0000.
In other local news South African Revenue Service customs and excise data on the country’s trade with non-Southern African Customs Union trading partners on Friday showed the trade deficit narrowed from R15bn in April to R11bn in May. A BDlive poll of economists surveyed had forecast a deficit of R11.3bn. Their forecasts ranged between a deficits of R9bn and R12bn. "This is an improvement, but still quite large," said Colen Garrow, Meganomics economist.
To read the full report, visit the Currency Solutions website. Foreign exchange South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange Cape Town. To know more about how we can help you Contact Us.
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