SA economy is collapsing - how long do I wait before buying holiday currency?
Your questions answered by our Currency Expert John Cameron. Click here to ask your currency question...
On Thursday, 10th December 2015 following question to our expert...
I've been tracking the Rand and it's the best exchange rate all year...given the gvt's announcement...I'm just wondering whether it will crash further or pick back up...?
On Friday, 11th December 2015 ...
Thanks for getting in touch.
In answer to your question, the Pound Sterling Rand exchange rate has experienced a real whipsaw move higher since the start of the week following the unceremonious sacking of the South Africa’s FinMin and an increasing lack of confidence in the nation’s policymakers. GBP ZAR has gained the best part of 10% during this time and is still rising at the time of writing.
This move cannot be sustained and a technical correction lower must be on the cards sooner rather than later. If you are looking at selling GBP into ZAR in the short to medium term, now would appear to be a good time. However, the major trend over the past five years remains to the upside, and with the deep-set problems which SA faces, if you have longer, you might want to take a ‘wait and see’ approach.
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