The rand has been hitting a few record lows in the last few months, with another hard knock on Heritage Day last week, when it stood at R14,05 to the dollar. Whether you’re living within South African borders, or have emigrated abroad, it’s bad news if you still have investments in the country.
With losses of more than 18% against the dollar thus far in 2015 we seem to be making exchange rates look like Olympic trials. But the movement is in line with other emerging currencies, suggesting external factors have the greatest influence on global exchange rates.
The weak rand does not seem to be affecting middle-to-lower income earners as much as the upper-class who, it’s said, are feeling the pinch. Not everybody loses however – some service providers have taken significant liberties with the depreciation; Multichoice, for instance, has warned of a second annual price hike for DStv subscribers in South Africa – a practise which the satellite-TV operator has enforced throughout Africa, much to the scorn of their customers. Other, companies, like Sappi, are enjoying the weak currency with cheap pulp and paper exports soaring.
Investment in offshore assets
For those looking towards a hedge against further declines the only real option is investment in offshore assets. From multi-currency bank accounts to capital secured deposits with returns linked to equity markets, the choices in hard currency, are extensive.
With recent increases to the personal exchange control allowances more and more people are now taking advantage of the opportunity to park funds outside the country and safeguard their nest egg.
Whatever your preference, talk to us about moving your money offshore and getting the best out of your bucks. If you require help with financial emigration, don’t call us, we’ll call you!