There are many concerns and conversations around the value of our Rand and our dear President’s comments. As I’ve said before, there is nothing we can do about these things so why worry about them too much. Some folk however, are directly affected by the exchange rates from a business point of view, either positively or negatively. I know of someone who’s primary client pays in US Dollars and so his income in Rands has recently got better each month. Then there are many businesses who might experience decreased sales if they need to import raw materials or components or products. From the consumer’s point of view we’ll have to pay more for these items or reduce our use thereof. For luxury goods we can choose not to buy.
Our South African based listed investments might have suddenly increased in value as a result of the offshore portions of the funds we might be invested in, which are priced in a foreign currency and then converted back to report to us in Rands. But its an increase on the back of currency movements, not an increase in the value of the assets the fund owns.