Certain sectors of the South African economy set to benefit from a weaker rand
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GUEST – Harry Scherzer, CEO, Future Forex
For most ordinary South Africans, the declining value of the rand over the past few years has been a big negative. It’s meant that everything from petrol to cars, electronics, and even your favourite sunglasses have gotten more expensive. There are, however, a few people for whom a weaker rand is a positive, most notably exporters.
That’s because, even if they charge the same price for the goods they’re selling internationally, they’re going to receive more money, at least in rand terms. And given that South Africa exports hundreds of billions or rands worth of goods every month, that can also be a net positive for certain sectors of the economy. But, even when exporters are winning on the exchange rate, they could still be losing out on valuable revenue.
That’s because of the way banks and other traditional forex providers charge for such transactions, with smaller and niche exporters especially impacted. Fortunately, it doesn’t have to be that way. By choosing the right forex provider, exporters can enjoy even better returns on every order.
For most ordinary South Africans, the declining value of the rand over the past few years has been a big negative. It’s meant that everything from petrol to cars, electronics, and even your favourite sunglasses have gotten more expensive. There are, however, a few people for whom a weaker rand is a positive, most notably exporters.
That’s because, even if they charge the same price for the goods they’re selling internationally, they’re going to receive more money, at least in rand terms. And given that South Africa exports hundreds of billions or rands worth of goods every month, that can also be a net positive for certain sectors of the economy. But, even when exporters are winning on the exchange rate, they could still be losing out on valuable revenue.
That’s because of the way banks and other traditional forex providers charge for such transactions, with smaller and niche exporters especially impacted. Fortunately, it doesn’t have to be that way. By choosing the right forex provider, exporters can enjoy even better returns on every order.
