South African Rand Falls To New Record Low
Photo: Oritaku
The South African rand reached a new record level low of 16.50 as of Monday, January 11 at 8:30 UTC, diving downward to a 9 percent low that the economy has not seen since 2008.
South Africa moves closer to a recession and a junk rating after the rand collapse https://t.co/Mi4dXa5Drp pic.twitter.com/p4u6Op2erD
— Bloomberg Business (@business) January 11, 2016
Bloomberg reports, “The rand’s slide on Monday probably came after “a combination of stops and margin calls caused mass capitulation” by Japanese retail investors, Gareth Berry, a foreign-exchange strategist at Macquarie Bank Ltd. in Singapore, wrote in a research note.
#Rand meltdown brings South Africa closer to recession, junk rating https://t.co/oSCJsAnENF pic.twitter.com/ibUQ8NTXbj
— Bloomberg Africa (@BBGAfrica) January 11, 2016
It's also possible that the rand accelerated its losses from back in December, when President Zuma reappointed Pravin Gordhan following the worst market turmoil.
On the upside, it means the timing is right for those of you that are interested in traveling to South Africa because the market is right on track for you to get the best value for your U.S. dollar to buy South African rands.
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations and travelers. Products and services for international travelers include access to buy and sell more than 80 foreign currencies, multi-currency cash passport’s and traveler’s cheques. For financial institutions, our services include the exchange of foreign currencies, international wire transfers, purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software https://www.ceifx.com/.
