Thursday, 30 May 2013
Rand falls 15% this year
Trade report 30/05/2013
The rand slipped to a new four year low against the dollar on Wednesday as disappointing economic growth figures and fears of strikes in the mining sector pushed foreign investors to sell local bonds and reignited concerns over the currency. The rand has fallen over 15% this year and on Wednesday reached a low of R9.85, coming wit in range of the psychological R10/$ mark.
In international news, the Organisation for Economic Co-operation and Development (OECD) said on Wednesday that Eurozone will fall further behind US and Japan this year. The OECD forecast the world economy would grow 3.1% in 2013 and 4% in 2014, at its twice-yearly economic outlook. In contrast the OECD forecast the Eurozone economy to contract by 0.6% in 2013 and then returning to growth by 1.1% in 2014.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa or money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in Cape Town. To know more about how we can help you Contact Us.
Wednesday, 29 May 2013
Poor GDP data causes weaker rand
Trade report 29/05/2013
The extent of the economic slowdown in South Africa was made abundantly clear with the release of first quarter economic growth figures. Trade date released on Tuesday showed seasonally adjusted and annualised GDP increased by 0.9% in the first quarter far from the 1.9% what was forecasted. The agriculture and manufacturing industries retracted countering gains in the mining and finance industries. The lack of significant growth may result in the Reserve bank reducing lending rates again later this year.
In international news the American Standar & Poor’s Case-Shiller home price index posted its biggest gains in seven years on Tuesday. House prices increased in each of the 20 cities tracked. Housing improvements have seemed to lift consumer confidence and spending in the US and have countered fears that consumers would pull back in response to the government’s austerity measures.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa or money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in Cape Town. To know more about how we can help you Contact Us.
The extent of the economic slowdown in South Africa was made abundantly clear with the release of first quarter economic growth figures. Trade date released on Tuesday showed seasonally adjusted and annualised GDP increased by 0.9% in the first quarter far from the 1.9% what was forecasted. The agriculture and manufacturing industries retracted countering gains in the mining and finance industries. The lack of significant growth may result in the Reserve bank reducing lending rates again later this year.
In international news the American Standar & Poor’s Case-Shiller home price index posted its biggest gains in seven years on Tuesday. House prices increased in each of the 20 cities tracked. Housing improvements have seemed to lift consumer confidence and spending in the US and have countered fears that consumers would pull back in response to the government’s austerity measures.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa or money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in Cape Town. To know more about how we can help you Contact Us.
Tuesday, 28 May 2013
Rand under pressure
Trade report 28/05/2013
The rand is again starting the trading session on the back foot and is well above the 9.6000 mark. The currency has been trading at four year lows just shy of R9.70 for the last week. The rand is expected to stay under pressure as economic growth data is due for release at 11:30 and is expected to show that GDP has slowed since last year. The USD-ZAR is expected to trade at 9.55-9.7000 today.
In international news the European Commission has accused Chinese firms of selling solar panels at below cost in Europe and plan to impose duties on China in order to make it harder for them to gain market share in Europe. A survey of EU member states revealed that most EU governments opposed the plan to impose duties on solar panel imports as they are fearful of losing business in China.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa/Money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in South Africa. To know more about how we can help you Contact Us.
The rand is again starting the trading session on the back foot and is well above the 9.6000 mark. The currency has been trading at four year lows just shy of R9.70 for the last week. The rand is expected to stay under pressure as economic growth data is due for release at 11:30 and is expected to show that GDP has slowed since last year. The USD-ZAR is expected to trade at 9.55-9.7000 today.
In international news the European Commission has accused Chinese firms of selling solar panels at below cost in Europe and plan to impose duties on China in order to make it harder for them to gain market share in Europe. A survey of EU member states revealed that most EU governments opposed the plan to impose duties on solar panel imports as they are fearful of losing business in China.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa/Money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in South Africa. To know more about how we can help you Contact Us.
Monday, 27 May 2013
Rand on the defensive
Trade report 20/05/2013
The ZAR was on the defensive in early Monday morning trade, this may be related to the AUD extending its slide. The amalgamation of weaker demand for commodities, combined with the increased chance of more monetary easing has seen the AUD come under considerable pressure. Even though there is a major difference between the South African and Australian economies, the AUD is still used as a barometer for commodity currencies. The USD-ZAR is expected to trade at 9.53 – 9.6500.
Senior UK financial services executives have been forced to personally guarantee that their firms have dealt properly with regulatory concerns by the new banking watchdogs. The Prudential Regulation Authority and the Financial Conduct Authority are using signed confirmations form senior financial executives to hold them accountable if something should go wrong. “If we find a particular problem has not been addressed, the confirmation would make it easier to take enforcement action. That is part of the point,” said FCA director of supervision, Clive Adamson.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa/Money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in South Africa. To know more about how we can help you Contact Us.
The ZAR was on the defensive in early Monday morning trade, this may be related to the AUD extending its slide. The amalgamation of weaker demand for commodities, combined with the increased chance of more monetary easing has seen the AUD come under considerable pressure. Even though there is a major difference between the South African and Australian economies, the AUD is still used as a barometer for commodity currencies. The USD-ZAR is expected to trade at 9.53 – 9.6500.
Senior UK financial services executives have been forced to personally guarantee that their firms have dealt properly with regulatory concerns by the new banking watchdogs. The Prudential Regulation Authority and the Financial Conduct Authority are using signed confirmations form senior financial executives to hold them accountable if something should go wrong. “If we find a particular problem has not been addressed, the confirmation would make it easier to take enforcement action. That is part of the point,” said FCA director of supervision, Clive Adamson.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa/Money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in South Africa. To know more about how we can help you Contact Us.
Friday, 24 May 2013
Marcus keeps rates at 5%
“The repo rate (repurchase rate) is the interest rate at which commercial banks can borrow money from the Reserve Bank.” On Thursday a decision was made by the South African Reserve Bank (SARB) to leave the repo rate unchanged. SARB left the repo rate at 5%. The decision was in line with the opinions of 25 economists polled by Reuters last week. The Bank admitted that for the first time in nearly a year they strongly considered a rate cut to boost economic growth.
SARB also made the decision to lower its 2013 growth forecast from 2.7% to 2.4% and raised concerns about the turbulent labour relations in the mining sector with wage negotiations set to start in the coming weeks.
The Bank also raised concerns over South Africa's very tight electricity supply for winter and the high possibility of rolling blackouts in the months to come. Another concern was the weak global demand and the effect this has on our export market with unemployment already stuck at 25%.
SARB Governor Gill Marcus said after reflecting on these difficulties the monetary policy committee discussed a rate cut extensively, but concluded that it would be “premature” for markets to price a rate cut in now.
Do you need a supplier of foreign exchange in Cape Town? Let one of our professional consultants at Currency Solutions assist you. To know more about how we can help you Contact Us.
SARB also made the decision to lower its 2013 growth forecast from 2.7% to 2.4% and raised concerns about the turbulent labour relations in the mining sector with wage negotiations set to start in the coming weeks.
The Bank also raised concerns over South Africa's very tight electricity supply for winter and the high possibility of rolling blackouts in the months to come. Another concern was the weak global demand and the effect this has on our export market with unemployment already stuck at 25%.
SARB Governor Gill Marcus said after reflecting on these difficulties the monetary policy committee discussed a rate cut extensively, but concluded that it would be “premature” for markets to price a rate cut in now.
Do you need a supplier of foreign exchange in Cape Town? Let one of our professional consultants at Currency Solutions assist you. To know more about how we can help you Contact Us.
Thursday, 23 May 2013
Why should I use a currency outsourcer?
Many business and private clients don’t know that FSB regulated foreign currency outsourcers exist and use their banks to transfer foreign currency abroad even though it can be very expensive. The core focus of a currency outsourcer or specialist’s business is foreign exchange and we are therefore able to negotiate great exchange rates with authorised dealers and pass these savings onto our clients.
Cost
When using the services of a bank, deal size and the frequency of a client’s foreign exchange requirements determine how competitive the exchange rate will be. Currency outsourcers carry out many foreign exchange transactions across a wide variety of currencies and in larger volumes, thus we are offered better exchange rates and lower transmission costs by the authorised dealers we use. We are then able to pass these savings onto our clients, because we do not have the overheads that the banks have.
Currency specialists can usually save you anything from 0.25% up to 2% of the amount being transferred. For example, a client transferring R1000 000 into US dollars was recently quoted 9.75 by their bank and would have received $102,534. We quoted 9.64 and paid $103,734.
Transparency
Currency outsourcers operate a straightforward and transparent service whereby we agree and fix the foreign exchange margin for all transfers when a client signs up. There are no additional “hidden” fees or costs. Our clients appreciate this level of transparency, as most banks often change the margin depending on the size of the transfer and may charge additional fees (e.g. preparation of documents, etc.).
Personalized service
As outsourcers are not big companies we are able to offer personalised service. Banks employ thousands of people and a single transaction can be handled by multiple persons before it is completed. When using a currency outsourcer a single trader will be responsible for your account. He or she will explain to you the various allowances, assist with paperwork, set up your account and send you deal confirmations.
If you are transferring funds into or out of South Africa; let one of our professional consultants at Currency Solutions assist you. To know more about how we can help you Contact Us.
Cost
When using the services of a bank, deal size and the frequency of a client’s foreign exchange requirements determine how competitive the exchange rate will be. Currency outsourcers carry out many foreign exchange transactions across a wide variety of currencies and in larger volumes, thus we are offered better exchange rates and lower transmission costs by the authorised dealers we use. We are then able to pass these savings onto our clients, because we do not have the overheads that the banks have.
Currency specialists can usually save you anything from 0.25% up to 2% of the amount being transferred. For example, a client transferring R1000 000 into US dollars was recently quoted 9.75 by their bank and would have received $102,534. We quoted 9.64 and paid $103,734.
Transparency
Currency outsourcers operate a straightforward and transparent service whereby we agree and fix the foreign exchange margin for all transfers when a client signs up. There are no additional “hidden” fees or costs. Our clients appreciate this level of transparency, as most banks often change the margin depending on the size of the transfer and may charge additional fees (e.g. preparation of documents, etc.).
Personalized service
As outsourcers are not big companies we are able to offer personalised service. Banks employ thousands of people and a single transaction can be handled by multiple persons before it is completed. When using a currency outsourcer a single trader will be responsible for your account. He or she will explain to you the various allowances, assist with paperwork, set up your account and send you deal confirmations.
If you are transferring funds into or out of South Africa; let one of our professional consultants at Currency Solutions assist you. To know more about how we can help you Contact Us.
Tuesday, 21 May 2013
Mining sector unrest weakens rand
Trade report 21/05/2013
The National Union of Mineworkers (NUM) demand for large wage hikes in the coal and gold industries on Monday helped push the rand to a four year low against the dollar. "The market is nervous after breaking through R9.36/$, and the trend is continuing weaker," a local trader said. Mining investors were rattled after news broke on Sunday that NUM made a submission to the Chamber of Mines for pay rises of up to 60%.
On Monday US congressional investigators accused Apple of exploiting tax loopholes and in doing so avoided paying billions in taxes. A 40-page report on Apple’s international tax structure was released by the US Senate permanent subcommittee ahead of a hearing where the US technology group will be scrutinized. The Senate report stated that Apple’s use of loopholes for international profits allowed it to save US tax on $44bn in the past four years.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa/Money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in South Africa. To know more about how we can help you Contact Us.
The National Union of Mineworkers (NUM) demand for large wage hikes in the coal and gold industries on Monday helped push the rand to a four year low against the dollar. "The market is nervous after breaking through R9.36/$, and the trend is continuing weaker," a local trader said. Mining investors were rattled after news broke on Sunday that NUM made a submission to the Chamber of Mines for pay rises of up to 60%.
On Monday US congressional investigators accused Apple of exploiting tax loopholes and in doing so avoided paying billions in taxes. A 40-page report on Apple’s international tax structure was released by the US Senate permanent subcommittee ahead of a hearing where the US technology group will be scrutinized. The Senate report stated that Apple’s use of loopholes for international profits allowed it to save US tax on $44bn in the past four years.
To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa/Money transfers into South Africa – Let one of our professional consultants at assist you in securing the best foreign exchange rates in South Africa. To know more about how we can help you Contact Us.
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