Thursday, 21st February 2008 at 11:09 am
Rand reaches five-year lows

therandtoday73.jpgThe Rand reached a five-year low yesterday (20 February) when it was trading at R7.87 against the US dollar. This occurred just after the Minister of Finance announced the country’s budget. The drop in the rand is largely due to the announcement in the budget that exchange controls in the country had been eased meaning that quite a lot of money would be able to flow out of the country.

The government said it would ease exchange controls, allowing institutional investors to invest more offshore and removing a requirement that they obtain permission before taking the cash out of the country. With the current sentiment over South Africa, it could mean that investors maybe looking to invest their money offshore due to the negative outlook being caused by the ever rising inflation, electricity shortages and political leadership in South Africa. Billions of rand could flow out of the country which could also then force interest rates to go up again.

Related Posts
  • The rand breaches the R10/$ mark
    When most of us woke up this morning, we were shocked to find the rand trading at new record lows. The rand had slumped below the R10/$ mark over nigh...
  • Rand gets close to R8 / dollar
    At lunch time today (8 February 2008), the rand traded at R7.8675 against the dollar after having earlier reached the R7.875 mark. It is not looking t...
  • Rand reaches 2 month high against the dollar
    The rand firmed 1% to its strongest level against the dollar in two months today (22 July), despite the greenback's own rally after a Federal Reserve ...
Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Netvouz
  • DZone
  • ThisNext
  • StumbleUpon
  • Technorati

Subscribe

    Sign-up to receive the latest updates from TheRandToday.com direct to your mailbox

Comments

Jennifer Lancey on 21 February, 2008 at 11:43 am #

I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

Jennifer Lancey


Allen Taylor on 21 February, 2008 at 12:01 pm #

I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

Allen Taylor


Post a Comment
Name:
Email:
Website:
Comments:
Afrigator