The state of the Rand has left many a South African quite worried in the last few months. Its weakness against other currencies is not completely surprising, however it seems that more and more people are now looking at ways to make the most of their hard-earned money, especially as sentiment, looking forward, remains fairly negative.
Move your money and spread the risk
The world is in flux. Though the global economy remains highly dynamic, the incidence of political upheaval, business reform and natural disasters have become far more widespread. We are no longer separated by creed and border in the same way our ancestors used to be. In this day and age, it’s far more likely for occurrences in one part of the globe to have a knock-on effect on the economies of countries on the other side of the world. And unfortunately the South African rand is not always as adept at bouncing back from economic crisis as first world currencies.
Luckily this globalisation presents a silver lining in that individuals have more freedom to play in the international marketplace than ever before.
Although it may seem logical to transfer funds out of your country, irrespective of whether you live in South Africa or overseas, you’re still bound by the rules of exchange control. Although this shouldn’t be a barrier to offshore investment, there will be a strict process to follow – talking to a specialist forex broker like finglobal.com will make sure it’s done correctly, quickly and at the best possible exchange rates. A breach of exchange control regulations may be deemed a criminal offence which could result in significant financial penalties so it’s important to get it right.
Investing your money offshore enables you to spread your risk, not only from a currency perspective but also in terms of asset class and jurisdiction.
Protection against rand depreciation
Investing in hard currency overseas not only provides protection against further declines in the Rand, it could also provide a real return if you convert back at a later date
Funds held offshore can be invested as you choose; you select the asset class, the geographical jurisdiction and of course, the level of risk. Although returns in South African equity markets have been good in recent years it makes a lot of sense to have a more traditional approach to investment by having your eggs in different baskets.
It doesn’t matter where you live
Whether you live in South Africa or overseas it makes no difference – it’s about where your wealth is based. Your location may determine how you actually move funds out of South Africa, but whatever the situation there will be a solution.
Relief from South Africa’s exchange control regulations
Once you have moved funds offshore the exchange control box has been ticked and you’re free to transfer between jurisdictions and different asset classes, how and when you wish.
Start investing today and make your money grow
To enjoy the benefits of offshore investment why not talk to finglobal.com today and make it happen. No matter how complicated your situation we’ll have a simple solution.
For the most competitive exchange rates, low fees and unrivalled personal service from a Reserve Bank approved foreign exchange intermediary, just leave your details and we’ll call you!