Weakening ZAR – What’s Going On?

Lately the news has been filled with reports on the weakening Rand and what is going on in Emerging Markets as a whole. And the reason for the confusion about the cause of all of this, is that there is no “One {story} to bind them all…”

A certain financial adviser I was chatting to remarked “It’s as if Ashwin Willemse has sent the market into a tailspin”. Of course he has nothing to do with it, but I can see the point – there is no “big story” that explains the pressure the markets and ZAR is experiencing.

So what is this invisible hand?

There are multiple contributing factors to this pressure we are experiencing:

  1. Geo-Political Tensions are driving investors into a Risk-Off environment. This is affecting the Global Financial Sector as markets are feeling a bit jittery. Maybe it is still early days, but maybe Trump’s visit with Kim Jong Un might calm tensions somewhat.
  2. Emerging Markets as a basket (South Africa, Mexico, Brazil, Turkey and Russia) have been experiencing record outflows from its bond markets.
  3. In South Africa specifically, the ZAR and ALSI have irrationally overshot on the back of Ramaphosa’s victory, and are reverting to the mean.
  4. SA’s balance of trade and current account.
  5. Government spending is still at all-time highs resulting in an enormous budget deficit.

This increased volatility is likely to last for as long as the ALSI is propped up on a weaker currency. If company valuations can normalise on the back of true Economic Growth and Earnings, we can afford a stronger currency without killing our exporters, specifically our miners.

I think we will be in this for quite a while, so grab your oars and start rowing!

 

Please follow and like us:

113 thoughts on “Weakening ZAR – What’s Going On?

  1. I am extremely impressed together with your writing abilities
    as neatly as with the layout to your weblog. Is that this
    a paid subject matter or did you modify it yourself?
    Anyway stay up the excellent high quality writing, it’s
    uncommon to look a great weblog like this one today..

  2. [url=http://metformin0l1.com]generic metformin[/url]
    [url=http://cialis0z.com]is generic cialis from canada safe [/url]
    [url=http://sildenafila1c.com]buy sildenafil[/url]
    [url=http://zithromax0l1.com]z pack antibiotic for sale [/url]

  3. [url=http://xenical0l1.com]generic xenical[/url]
    [url=http://xenical0l1.com]buy xenical or orlistat [/url]
    [url=http://lisinopril0l1.com]buy lisinopril[/url]
    [url=http://tadalafild9z.com]where to buy tadalafil in singapore [/url]

  4. [url=http://sildenafild9z.com]buy sildenafil[/url]
    [url=http://xenical0l1.com]xenical over the counter [/url]
    [url=http://xenical0l1.com]buy xenical[/url]
    [url=http://sildenafila1c.com]homemade sildenafil citrate [/url]
    [url=http://prednisolone0l1.com]generic prednisolone[/url]
    [url=http://sildenafild9z.com]sildenafil free [/url]

  5. [url=http://cialis0z.com]http://www.cialis0z.com[/url]
    [url=http://metformin0l1.com]metformin hcl 1000 mg price is ridiculous on medicare? [/url]
    [url=http://prozac0l1.com]www.prozac0l1.com[/url]
    [url=http://sildenafila1c.com]side effects of sildenafil in dogs [/url]

  6. [url=http://sildenafila1c.com]cheap sildenafil[/url]
    [url=http://cialis0l1.com]daily dose of cialis of 10 mg [/url]
    [url=http://propecia0l1.com]http://propecia0l1.com[/url]
    [url=http://xenical0l1.com]xenical coupon.com [/url]

  7. [url=http://tadalafila1c.com]http://www.tadalafila1c.com[/url]
    [url=http://cialis0z.com]best buy for cialis 5 mg [/url]
    [url=http://prednisone0l1.com]www.prednisone0l1.com[/url]
    [url=http://zithromax0l1.com]safe place to buy zithromax [/url]
    [url=http://sildenafila1c.com]sildenafil[/url]
    [url=http://tadalafild9z.com]fda tadalafil in over the counter pills [/url]

  8. [url=http://lisinopril0l1.com]http://lisinopril0l1.com[/url]
    [url=http://sildenafila1c.com]sildenafil generic walgreens price [/url]
    [url=http://prozac0l1.com]cheap prozac[/url]
    [url=http://allopurinol0l1.com]how does allopurinol reduce uric acid [/url]

  9. [url=http://cialis0z.com]buy cialis[/url]
    [url=http://sildenafild9z.com]dapoxetine and sildenafil tablets online pharmacy [/url]
    [url=http://sildenafila1c.com]cheap sildenafil[/url]
    [url=http://prednisone0l1.com]can i buy prednisone at walgreens [/url]
    [url=http://prozac0l1.com]prozac[/url]
    [url=http://tadalafild9z.com]tadalafil 20 mg venta [/url]

  10. [url=http://cialis0z.com]www.cialis0z.com[/url]
    [url=http://lisinopril0l1.com]taking a diuretic with lisinopril [/url]
    [url=http://metformin0l1.com]generic metformin[/url]
    [url=http://prozac0l1.com]involuntary quivering with prozac [/url]

  11. [url=http://prednisolone0l1.com]cheap prednisolone[/url]
    [url=http://prozac0l1.com]about prozac [/url]
    [url=http://prednisolone0l1.com]cheap prednisolone[/url]
    [url=http://tadalafild9z.com]most generic name ever [/url]
    [url=http://metformin0l1.com]cheap metformin[/url]
    [url=http://tadalafild9z.com]where to buy tadalafil [/url]

  12. [url=http://tadalafila1c.com]buy tadalafil[/url]
    [url=http://prednisone0l1.com]prednisone 4 mg [/url]
    [url=http://prednisolone0l1.com]generic prednisolone[/url]
    [url=http://lisinopril0l1.com]lisinopril and salt substitute [/url]

  13. [url=http://sildenafild9z.com]www.sildenafild9z.com[/url]
    [url=http://prednisone0l1.com]can 3 days of prednisone cause shakes [/url]
    [url=http://prozac0l1.com]cheap prozac[/url]
    [url=http://lisinopril0l1.com]what are side effects of accidentally taking a double dose of lisinopril 20 mg [/url]

  14. [url=http://prednisolone0l1.com]http://www.prednisolone0l1.com[/url]
    [url=http://tadalafild9z.com]thelowest price for tadalafil [/url]
    [url=http://tadalafild9z.com]http://www.tadalafild9z.com[/url]
    [url=http://xenical0l1.com]xenical price uae [/url]
    [url=http://tadalafila1c.com]http://www.tadalafila1c.com[/url]
    [url=http://propecia0l1.com]does propecia come in a topical formula [/url]

  15. [url=http://zithromax0l1.com]buy zithromax[/url]
    [url=http://cialis0l1.com]generic cialis price [/url]
    [url=http://zithromax0l1.com]www.zithromax0l1.com[/url]
    [url=http://cialisa1c.com]cialis over-the-counter [/url]

  16. [url=http://sildenafila1c.com]www.sildenafila1c.com[/url]
    [url=http://prozac0l1.com]prozac angel [/url]
    [url=http://lisinopril0l1.com]cheap lisinopril[/url]
    [url=http://cialis0z.com]amateur cialis sex [/url]
    [url=http://metformin0l1.com]http://metformin0l1.com[/url]
    [url=http://zithromax0l1.com]long term use of zithromax antibiotic [/url]

  17. [url=http://prednisone0l1.com]http://www.prednisone0l1.com[/url]
    [url=http://tadalafild9z.com]when will teva sell generic tadalafil in the u.s.? [/url]
    [url=http://cialis0z.com]www.cialis0z.com[/url]
    [url=http://sildenafild9z.com]t is sildenafil 20 mg fda approved for erectile dysfunction [/url]
    [url=http://zithromax0l1.com]zithromax[/url]
    [url=http://cialisa1c.com]order cialis pills [/url]

  18. [url=http://metformin0l1.com]http://www.metformin0l1.com[/url]
    [url=http://cialis0z.com]discount cialis on pornhub [/url]
    [url=http://tadalafila1c.com]http://tadalafila1c.com[/url]
    [url=http://xenical0l1.com]how does xenical block fat digestion [/url]

  19. [url=http://allopurinol0l1.com]http://www.allopurinol0l1.com[/url]
    [url=http://cialisa1c.com]photos of cialis an other drugs for erectile dysfunction [/url]
    [url=http://xenical0l1.com]generic xenical[/url]
    [url=http://cialisa1c.com]cialis storys [/url]
    [url=http://tadalafild9z.com]http://tadalafild9z.com[/url]
    [url=http://metformin0l1.com]metformin alert [/url]

  20. [url=http://metformin0l1.com]generic metformin[/url]
    [url=http://zithromax0l1.com]zithromax tablet cvc pharmacy [/url]
    [url=http://sildenafild9z.com]http://www.sildenafild9z.com[/url]
    [url=http://sildenafila1c.com]buy sildenafil generic at pharmacy [/url]

  21. [url=http://tadalafild9z.com]generic tadalafil[/url]
    [url=http://metformin0l1.com]xgeva and metformin [/url]
    [url=http://prozac0l1.com]http://www.prozac0l1.com[/url]
    [url=http://metformin0l1.com]benefits of taking metformin [/url]
    [url=http://tadalafild9z.com]tadalafil[/url]
    [url=http://tadalafila1c.com]usage of tab tadalafil 5 mg [/url]

Leave a Reply

Your email address will not be published. Required fields are marked *