Rand continues freefall

[Wheels]

1 USD = 15.46 ZAR

Perhaps its time to book that 2016 hunt in Rand!



Is

turning into

Is the ZAR

turning into

Thoughts go out to all of you guys trying to make a living in this economic environment.

 

[BRICKBURN]

This could possibly facilitate an understanding..... Well, maybe not.

 

[Wheels]

 

[gizmo]

I feel sorry for our ph's trying to make a living in RSA with all this mess. I don't see that hunt prices will adjust that much as they are really normally set up for the American dollar or euro. Zimbabwe's hunts certainly haven't lost their value. It's about the same as it's always been it seems like and increases every year like the rest.

 

[Bruce]

The guys that suffer with this ridiculousness are the local RSA hunters.. particularly those that hunt across borders and need to pay in dollars... BUYING dollars now costs a toilet full more Rands!!!!!
Travelling overseas is now also more difficult and even impossible with this failing exchange rate.

 

[Royal27]

Sitting at 16 to 1 now. Wow....

 

[Areaonereal]

Are local prices in SA up that much from last year when the rand was about 10-1 more or less. Our US dollars are generating a 60% increase in the exchange of dollars to rand.

 

[Bhfs300]

The bad thing about this is all the Safari companies that are going to be in the states for all the shows January and February when the Rand is down.

 

[Wheels]

This could possibly facilitate an understanding..... Well, maybe not.

With quotes like Zuma made above we would have been wise to take our hunting budget when he came into office and sold rand. We would be making enough off our investment to go hunting every year at no cost.

http://www.xe.com/currencycharts/?from=USD&to=ZAR&view=5Y

Wait, he was reelected, maybe there is still time.

 

[MBIZI SAFARIS]

Yes... but I do not fallow... there is no outfitter or PH in RSA or even in whole Africa that even mention Rand or other local currency in them price lists, and all clients pay daily rates and trophy fees in dollars or Euro. If a client should pay in Rand I can see a big problem, but the payment is in dollars and therefore the outfitter can only winning on a strong dollar rate when he later on exchange those dollars to Rand, right...

Only my humble opinion....

 

[Hogpatrol]

Is inflation really that bad? I would think oil prices being less than half of what they a year ago would mitigate some of the price rise pressure. What say you South Africans?

Just an FYI, this IS making news in the United States.

http://www.marketwatch.com/story/so...d-to-an-all-time-low-2015-12-09?siteid=YAHOOB

 

[CAustin]

Lack of confidence in the SA government is driving a lot of this free fall.

 

[Wheels]

Yes... but I do not fallow... there is no outfitter or PH in RSA that even mention Rand in them price lists, so in this case all clients pay daily rates and trophy fees in dollars or Euro, if they should pay in Rand I can see a big problem.

I agree that the vast majority of RSA/Namibian outfitters book in USD or Euros to foreigners.

I haven't done this in the last few trips, but in the past, I have booked hunts in both Rand (RSA) and NAD (Namibia) (NAD floats with ZAR) . (Note: make sure you agree with the outfitter on what financial institution's exchange rate you will use so there will be no disagreements/bad feelings) Just ask the outfitter, I bet he will oblige. Besides, all of his biltong hunts and the rest of his business is in ZAR/NAD. As fast as things are falling right now they may not want to make the transaction at todays spot price however. But you never know.

Can't remember where I saw it now but I read a couple of months ago that the ZAR may be at 20+ in 2016. Of course this is just one financial guru's (fools) guesstimation. With as quickly as things are happening however, perhaps he is a guru.

 

[BRICKBURN]

Lack of confidence in the SA government is driving a lot of this free fall.

Zuma just fired his Finance Minister. Not exactly a confidence booster.
Any one of you planning on making a large investment with this Muppet in charge?

 

[Wheels]

Is inflation really that bad? I would think oil prices being less than half of what they a year ago would mitigate some of the price rise pressure. What say you South Africans?

Just an FYI, this IS making news in the United States.

http://www.marketwatch.com/story/so...d-to-an-all-time-low-2015-12-09?siteid=YAHOOB

Quotes from the above noted Hogpatrol post.


"....South Africa’s economy—like the economies of many resource-rich emerging markets—has been battered by falling metals prices. On Friday, Fitch Ratings Ltd downgraded South Africa’s credit rating to one notch above “junk,” while Standard & Poor’s Ratings Services lowered its outlook on the country’s debt to negative from stable, The Wall Street Journal reported.

The move increases the likelihood of another downgrade, said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

The rand has already lost more than a third of its value against the dollar this year.....".

 

[spike.t]

with commodity prices going down the tubes and the big mining companies laying off thousands and trying to sell off mines , smelters etc, its only going to get worse in SA and also Zambia which is massively reliant on copper.......................

 

[BRICKBURN]

Is this what you're saying Mike?

 

[Wheels]

Zuma just fired his Finance Minister. Not exactly a confidence booster.
Any one of you planning on making a large investment with this Muppet in charge?

Nicky Oppenheimer probably saw the writing on the wall. Or heard Jacob Zuma speak! Still has to be difficult to sell a company that has been in the family 100 years.

http://www.forbes.com/lists/2011/89/africa-billionaires-11_Nicky-Oppenheimer-family_2MY9.html

 

[Hank2211]

Zuma just fired his Finance Minister. Not exactly a confidence booster.
Any one of you planning on making a large investment with this Muppet in charge?

Best time to make an investment is when there's "blood in the streets" . . . but on the other hand . . .

 

[James.Grage]

I thought i would purchase some Rands when it 15 to 1. I have been tracking however i have not looked the past few days.

Just checked and it is 15.87 to 1

I also read where the Rand may go to 20 to 1 in 2016.