24. May 2018 India92°F

Forex Archives - Sunnywebmoney.com

SunnyMay 24, 2018
NBT.jpg

1min10


कुछ साल के अंतराल पर हमेशा रुपये पर दबाव बनता रहा है, जिससे मार्केट की चिंता बढ़ती है। एक बार फिर ऐसा ही हो रहा है। सैकत दास और आत्मदीप रे की रिपोर्ट बता रही है कि रुपये में आ रही गिरावट से पैदा हुई समस्या खत्म हो जाएगी और किसी क्राइसिस मैनेजमेंट की जरूरत नहीं पड़ेगी

पांच साल पहले इसी हफ्ते में तत्कालीन फेडरल रिजर्व के चेयरमैन बेन बर्नान्की के राहत पैकेज वापस लेने की बात कहने से ग्लोबल फाइनेंशियल मार्केट्स में खलबली मच गई थी और 1990 के बाद देश को तीसरे करेंसी संकट का सामना करना पड़ा था। एक बार फिर से करेंसी क्राइसिस की अटकलें लगनी शुरू हो गई हैं।

सालभर पहले निवेशकों से एग्रेसिव तरीके से डॉलर खरीदने वाला रिजर्व बैंक ऑफ इंडिया (आरबीआई) आज बिल्कुल उसका उलटा कर रहा है। जो लोग पहले रिकॉर्ड विदेशी मुद्रा भंडार का जश्न मना रहे थे, आज उनकी परेशानी बढ़ रही है। ग्लोबल इमर्जिंग मार्केट्स में जिसे पहले सुरक्षित ठिकाना माना जा रहा था, आज वह किसी दलदल की तरह दिखने लगा है।

तेल के दाम में तेजी, ग्लोबल इंटरेस्ट रेट में बढ़ोतरी, लूज फिस्कल पॉलिसी, एक्सपोर्ट में गिरावट और बढ़ते करेंट एकाउंट डेफिसिट से देश की मैक्रो-इकनॉमिक सिचुएशन खराब हो रही है। इस साल इमर्जिंग मार्केट्स में भारतीय करेंसी का प्रदर्शन सबसे खराब रहा है। इस दौरान इसमें 6 पर्सेंट की गिरावट आई है और रुपये का प्रदर्शन इंडोनेशियाई करेंसी, साउथ अफ्रीका के रैंड से भी बुरा रहा है। ऊंचे वैल्यूएशन और मार्च क्वॉर्टर में कंपनियों के खराब रिजल्ट की वजह से विदेशी निवेश कम हो गया है। वित्त वर्ष 2018 में प्रत्यक्ष विदेशी निवेश (फॉरेन डायरेक्ट इनवेस्टमेंट यानी एफडीआई) के मामले में भारत का प्रदर्शन बढ़िया था, लेकिन अब इसमें भी गिरावट आ रही है।

मैक्रो-इकनॉमी की खराब हालत क्या करेंसी क्राइसिस की आहट है?

एक्सिस बैंक के इकनॉमिस्ट सौगत भट्टाचार्य का कहना है कि अभी डॉलर के मुकाबले रुपये में जो मूवमेंट हो रहा है, उससे किसी क्राइसिस का संकेत नहीं मिलता। उन्होंने कहा कि दूसरे इमर्जिंग मार्केट्स की तरह रुपये में भी कमजोरी आई है। इसकी वजह हाल के हफ्तों में डॉलर में आई मजबूती है।

मैक्रो-इकनॉमी की खराब हालत

सरकार की आमदनी और खर्च का अंतर यानी फिस्कल डेफिसिट, करेंट एकाउंट डेफिसिट (एक्सपोर्ट के मुकाबले इंपोर्ट अधिक रहने पर यह घाटा होता है) और महंगाई दर से रुपये की तकदीर तय होगी। 2013 के करेंसी क्राइसिस के वक्त फिस्कल डेफिसिट जीडीपी का 4.8 पर्सेंट था। तब रिटेल इन्फ्लेशन में सालाना 9.46 पर्सेंट की बढ़ोतरी हो रही थी और करेंट एकाउंट डेफिसिट जीडीपी के 3.6 पर्सेंट तक पहुंच गया था। सितंबर 2013 के अंत में सिर्फ 6.6 महीने के आयात लायक विदेशी मुद्रा भंडार बचा था। उसके बाद से मैक्रो-इकनॉमी में सुधार हुआ। फिस्कल डेफिसिट वित्त वर्ष 2018 में 3.5 पर्सेंट तक आ गया, जबकि इसके लिए 3 पर्सेंट का लक्ष्य रखा गया था। करेंट एकाउंट डेफिसिट भी कम होकर 1.9 पर्सेंट रह गया था और महंगाई दर 4.6 पर्सेंट थी। इससे विदेशी निवेशकों का भरोसा बढ़ा, जिससे 2017 में रुपये में मजबूती आई। हालांकि, तब एक्सपोर्टर्स कह रहे थे कि रुपये की वैल्यू बढ़ रही है और इससे उनकी प्रॉफिटेबिलिटी यानी मार्जिन पर बुरा असर पड़ रहा है। डीबीएस बैंक इंडिया के ट्रेडिंग हेड आशीष वैद्य ने बताया, ‘हम अभी करेंसी क्राइसिस के काफी दूर हैं।’ उन्होंने कहा कि पहले विदेशी निवेशकों को हायर रियल रेट ऑफर किए जाने की वजह से रुपये में स्थिरता बनी हुई थी। अब इस स्थिति में सुधार हो रहा है। वैद्य ने बताया कि जब भी इस तरह का करेक्शन होता है, उससे रियल इफेक्टिव एक्सचेंज रेट्स (आरईईआर) में नेचुरल एडजस्टमेंट होता है।

आगे का रास्ता

रुपये में गिरावट सबके लिए बुरी खबर नहीं है। इससे निर्यातकों को फायदा होगा, जो कई साल से भारतीय करेंसी में मजबूती की शिकायत कर रहे थे। फेडरेशन ऑफ इंडियन एक्सपोर्ट ऑर्गेनाइजेशंस के अजय सहाय ने बताया कि रुपये में हालिया गिरावट निर्यातकों के लिए फायदेमंद है, लेकिन सभी एक्सपोर्टर्स को इससे बड़ा लाभ नहीं होगा। हालांकि, जिन आयातकों ने करेंसी हेजिंग नहीं की थी, उन्हें इससे काफी नुकसान हो सकता है। जिन लोगों ने विदेश से कर्ज लिया है और उन्हें विदेशी इनकम नहीं होती, उन पर भी रुपये में कमजोरी का बुरा असर हो सकता है। एसपी जैन इंस्टीट्यूट ऑफ मैनेजमेंट एंड रिसर्च, मुंबई में फाइनेंस प्रोफेसर अनंत नारायण ने बताया, ‘वित्त वर्ष 2014 से 2018 के बीच रिजर्व बैंक के विदेशी मुद्रा भंडार में जो बढ़ोतरी हुई, उसमें 120 अरब डॉलर लॉन्ग रुपी, शॉर्ट डॉलर वाली पोजिशन के रूप में थी।’ अभी तक देश करेंसी क्राइसिस में नहीं फंसा है, लेकिन इस मामले में अतीत सबको परेशान कर रहा है।

Let’s block ads! (Why?)



Source link


SunnyMay 24, 2018
pakistan_505_052418125013.jpg

3min00


Pakistan has once again turned to its all-weather friend China for help in averting a foreign currency crisis by borrowing $1 billion from Chinese banks in April on good competitive rates, The Financial Times reported.

In an interview to the daily, the State Bank of Pakistan Governor Tariq Bajwa confirmed the loans were made by Beijing-backed banks on good rates.

“The money strengthens the financial, political and military ties between the two countries,” the top Pakistani banker was quoted as saying by the newspaper.

“Chinese commercial banks are awash with liquidity,” Bajwa said.

Pakistan’s foreign exchange reserves have dropped from $18.1 billion in April last year to $10.8 billion in May this year.

According to the article, Pakistani officials also hope that borrowing from Chinese banks will also save Pakistan from seeking help from the Internation Monetary Fund (IMF).

Since December 1988, Pakistan has had nine separate engagements with the IMF three of them were double programmes. That means there have been 12 IMF programmes in Pakistan in the last 28 years. Only four of them all initiated in the 2000s and 2010s were completed successfully; all the rest were abandoned halfway in the 1990s, the report said.

Lending money to Pakistan also favours China, said FT quoting Pakistani officials, as it does not wish to disclose details of the loans that are part of the China-Pakistan Economic Cooperation (CPEC) project.

China is investing almost $60 billion on building infrastructure in Pakistan. However, Beijing is reluctant to reveal the sum it is lending to Islamabad as part of the CPEC project.

“The Chinese are not keen on western institutions learning the minute details of [financing of] CPEC projects,” an unnamed official in Islamabad was quoted as saying.

“An IMF programme will require Pakistan to disclose the financial terms to its officials, the official said.

According to the FT report, prior to last month’s loan of $1 billion, Pakistan had borrowed almost $1.2 billion from Chinese banks since April, 2017 and more loans might follow.

Let’s block ads! (Why?)



Source link


SunnyMay 24, 2018
p

3min00



Forex Market: रुपए 12 पैसे की मजबूती के साथ 68.30 प्रति डॉलर पर खुला

<!– –>

<!—->

<!–

Searched for: | No. of records: 1230 in 230 milliseconds

  • <a href="” title=””>
    <img width="309" height="170" title="”alt=”” src=”” onerror=”this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);”>
    <a href="” title=””>

    <a href="” title=”Read More” class=”readmore”>Read More

  • No Records found. Please try with other keywords.

–>


<!–
console.log(‘inside prebidAdCall’);
var googletag=googletag||;
googletag.cmd=googletag.cmd||[];
var adUnits=[];
var pbjs = pbjs || ;
pbjs.que = pbjs.que || [];
(function()
var prebd = document.createElement(“script”);
prebd.async = true;
prebd.type = “text/javascript”;
var useS = “https:” == document.location.protocol;
prebd.src = (useS ? “https://” : “http://”) + “central.bhaskar.com/js_ads/ads/header-bidding/bhaskar/live/money-prebid.js”;
var node_pbd =document.getElementsByTagName(“script”)[0];
node_pbd.parentNode.insertBefore(prebd, node_pbd);
)();
–>

Let’s block ads! (Why?)



Source link


SunnyMay 24, 2018
24_05_2018-pak_china_17992719_8637532.jpg

1min00


Publish Date:Thu, 24 May 2018 08:10 AM (IST)

इस्लामाबाद (प्रेट्र)। पाकिस्तान ने एकबार फिर अपने सदाबहार मित्र चीन से मदद ली है। इस बार विदेशी मुद्रा संकट टालने के लिए उसने चीन के बैंकों से एक अरब डॉलर का कर्ज लिया है। बुधवार को मीडिया में आई रिपोर्ट के मुताबिक, अच्छे प्रतिस्प‌र्द्धी दर पर पाकिस्तान ने कर्ज लिया है। फाइनेंशियल टाइम्‍स के साथ बातचीत में पाकिस्‍तान के स्‍टेट बैंक के गवर्नर तारिक बाजवा ने इस बात की पुष्टि की है। उन्‍होंने कहा है कि यह कर्ज अच्‍छी ब्‍याज दरों पर मिला गया है।

चीन के साथ पाकिस्‍तान के वित्‍तीय, राजनैतिक सहित नजदीकी सैन्‍य संबंध हैं। बाजवा के अनुसार चीन के कमर्शियल बैंकों के पास बहुत ज्‍यादा लिक्विडिटी है। अखबार के अनुसार इस लोन से पहले भी पाक 1.2 अरब डॉलर का लोन चीन से ले चुका है।

पाकिस्तान का विदेशी मुद्रा भंडार तेजी से गिर रहा है। अखबार में प्रकाशित लेख के अनुसार अधिकारियों को चीन के बैंक से कर्ज लेने के बाद अब पाकिस्तान को अंतरराष्ट्रीय मुद्रा कोष से मदद नहीं लेनी पड़ेगी।

पाकिस्‍तान ने इंडस्‍ट्रियल एंड कॉमर्शियल बैंक ऑफ चाइना (आइसीबीसी) से 500 मिलियन डॉलर का एक और विदेशी कर्ज लिया है ताकि वह अपने घटते विदेशी मुद्रा भंडार को कुछ मजबूत कर सके। इसके पहले चीन के बैंक ने पाकिस्तान में पेमेंट सिचुएशन के बैलेंस को सपोर्ट करते हुए 1.3 अरब अमेरिकी डॉलर दिया था।

By Arti Yadav

Let’s block ads! (Why?)



Source link


SunnyMay 24, 2018
Naira.jpg

4min00




by |
May 23, 2018 8:58 pm


The nation’s currency closed stable on Wednesday after the Central Bank of Nigeria (CBN) made available the sum of $210 million, to meet customers’ requests in various segments of the foreign exchange market.

In its quest to meet customers needs in the various segments of the market, the CBN offered $100million to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got the sum of $55 million. According to figures obtained from the Bank on Wednesday, 23rd May, 2018, customers needing foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

At the investors and exporters forex window, naira was quoted at N361.42k per U. S dollar, the same level it traded the previous day, data from FMDQ indicated.

Naira gained 0.01 percent to close at N361.41k on Wednesday as against N361.46k/$ traded on Tuesday at the Nigerian Autonomous Foreign Exchange Fixing (NAFEX).

However, the city street forex trading shows naira trading at N366 per dollar. Aminu Gwadabe, president Association of Bureau De Change Operators of Nigeria (ABCON)said the depreciation is as a result of political anxiety.

It will be recalled that the CBN Governor, Godwin Emefiele, during his post-MPC remarks on 22nd May, 2018 said that the country’s foreign reserve stood at $47.79b and that pressure on the foreign reserve would be reduced as a result of the recent currency swap between the CBN and the Peoples Bank of China.

Also, the Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, reiterated the Banks commitment to continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability. Okorafor said that the CBN would sustain its strategic management of forex, with a view to reducing the country’s import bills and halting depletion of its foreign reserves.

The Bank last Friday, May 18, 2018, intervened to the tune of $293 million to cater for requests in the retail segment of the forex market.

Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N363/$1 in the BDC segment of the market on Wednesday, May 23, 2018.

HOPE MOSES-ASHIKE

Let’s block ads! (Why?)



Source link


SunnyMay 23, 2018
42-pakchina_5.jpg

2min00


नई दिल्ली :  

विदेशी मुद्रा संकट से बचने के लिये पाकिस्तान ने चीन की तरफ रुख किया है। उसने चीन से अच्छे और कम दर पर 1 बिलियन डॉलर लिया है।

द फाइनांशियल टाइम्स को दिये गए एक इंटरव्यू के दौरान पाकिस्तान रिज़र्व बैंक के गवर्नर तारिक बाजवा ने बताया कि चीनी बैंकों ने बहुत ही कम दर पर लोन दिया है।

उन्होंने कहा, ‘रकम दोनों देशों के बीच आर्थिक, राजनीतिक और सैन्य संबंधों को मजबूत करता है… चीन के कॉमर्शियल बैंकों में नकदी की कमी हो गई है।’

पाकिस्तान का विदेशी मुद्र भंडार इस साल के मई माह में 18.1 बिलियन डॉलर से घटकर 10.8 बिलियन डॉलर हो गया है।

अखबार में छपी खबर के अनुसार पाकिस्तानी आधिकारियों को उम्मीद है कि चीन के बैंकों से मिले लोन से पाकिस्तान को इटरनेशनल मॉनिटरी फंट (आईएमएफ) से पैसे के लिये सहायता मांगने से बच जाएगा।

और पढ़ें: कुमारस्वामी के बहाने विपक्षी हुए साथ, क्या मोदी को दे पाएंगे मात

इसे भी पढ़े:-


First Published: Wednesday, May 23, 2018 11:50 PM

Let’s block ads! (Why?)



Source link


SunnyMay 23, 2018
tourist-1527085487.jpg

1min00


tourist

Photo:TOURIST

नई दिल्ली। देश में पर्यटन से विदेशी मुद्रा आय अप्रैल 2018 के दौरान 15,713 करोड़ रुपए रही, जो कि अप्रैल, 2017 की तुलना में 10 प्रतिशत अधिक है। पर्यटन मंत्रालय ने आज बयान में यह जानकारी दी। 

Related Stories

 

इसमें कहा गया है कि अप्रैल, 2018 के दौरान विदेशी मुद्रा आय (एफईई) 15,713 करोड़ रुपए रही, जो कि पिछले वर्ष अप्रैल में 14,260 करोड़ रुपए थी। रुपए के आधार पर विदेशी मुद्रा आय में 10.2 प्रतिशत की वृद्धि हुई। वहीं, जनवरी-अप्रैल 2018 अवधि के दौरान विदेशी मुद्रा आय 14.2 प्रतिशत बढ़कर 68,629 करोड़ रुपए हो गई, जो कि पिछले वर्ष की इसी अवधि में 60,079 करोड़ रुपए थी। 

अमेरिकी डॉलर के आधार पर अप्रैल में विदेशी मुद्रा आय 2017 में 2.21 अरब डॉलर से बढ़कर 2018 में 2.39 अरब डॉलर हो गई है। इसमें 8.2 प्रतिशत की वृद्धि हुई। वहीं, जनवरी-अप्रैल 2018 में आय 17.4 प्रतिशत बढ़कर 10.62 अरब डॉलर हो गई, जो कि जनवरी-अप्रैल 2017 में 9.04 अरब डॉलर थी। 

Let’s block ads! (Why?)



Source link


SunnyMay 23, 2018
1527077085_

7min00


LONDON (Reuters) – The euro fell to near three-month lows against the Swiss franc on Wednesday as fresh data indicating a slowdown in European business activity cast a shadow over the timing of the central bank’s rate hike, while concerns over Italian politics rose.

A picture illustration of Swiss Franc and Euro banknotes taken in central Bosnian town of Zenica, January 26, 2015. REUTERS/Dado Ruvic

The euro’s weakness also spilled over to the dollar, falling half a percent on the day, but broader risk aversion kept the dollar on the back foot against the franc and the Japanese yen.

The yen surged 1.2 percent against the dollar, set for its biggest daily rise in more than a year, as a wave of caution swept currency markets a day after U.S. President Donald Trump tempered optimism over progress made in trade talks with China.

Carry trades, where investors borrow in relatively low yielding currencies to invest in higher-yielding ones, came under pressure with the euro/swiss franc falling to its lowest levels since early-March.

The euro has unwound all of its rally against the franc since the Italian elections as the prospect of a spendthrift coalition government taking shape in Rome unnerved investors.

“The euro is coming up against some structural headwinds as the PMI data shows no signs of picking up while the Italian situation is also weighing on sentiment,” said SEB senior currency strategist Richard Falkenhall.

Graphic: Euro risk reversals and positions – reut.rs/2Iz9KMY

DERIVATIVES

Currency derivative markets are signalling further weakness for the euro with one-year risk reversals on the single currency — a gauge of demand for options on a currency rising or falling — dropping to a seven-month low on Wednesday.

One year risk reversals fell to minus 0.4 after being in positive territory as recently as Monday, indicating that demand for euro puts has surged to protect downside risks, according to traders.

Morgan Stanley strategists said the euro’s recent weakness could prompt overseas investors to hedge their bond and equity investments in Europe, which could add further downside pressure on the euro.

“The euro/Swiss franc cross encapsulates the growing risk premium that investors are placing on the euro in recent days and we may see further downside for now,” said Alvin Tan, a currency strategist at Societe Generale in London.

While the dollar against a basket of its rivals rose 0.4 percent to 94.00, it weakened 1.2 percent and 0.6 percent against the Japanese yen and Swiss franc respectively.

Stocks tumbled and the yen gained broadly after Trump said on Tuesday he was not pleased with recent trade talks between the United States and China, the world’s two biggest economies.

The euro fell to a six month low after German PMI data fell to a 20-month low indicating that economic momentum in Europe’s biggest economy was faltering.

The euro/Swiss franc fell 0.7 percent to 1.1601 francs per euro, its lowest level since March 6.

The currency pair, a proxy for risk appetite within Europe, has fallen nearly 3 percent since May 14 as concerns of a fiscally profligate new coalition government in Rome has raised concerns of a showdown with the European Union.

The likelihood of a government comprised of the anti-establishment 5-Star Movement and the far-right League has pushed Italian 10-year yields up nearly 60 basis points since the start of May. The bulk of that move has been over the past week.

The safe-haven yen also rose against other currency crosses and surged against the Turkish lira, amid talk of Japanese retail investors selling the lira as stop-loss levels were hit.

The yen tends to rise in times of market turbulence since Japan is the world’s largest creditor nation and traders tend to assume Japanese investors would repatriate funds at times of crisis.

Investors are now looking to the release on Wednesday of the Fed’s minutes from its most recent meeting, when it kept interest rates steady.

In its post-meeting statement issued in early May, the Fed also said inflation had “moved close” to its target and that “on a 12-month basis is expected to run near the Committee’s symmetric 2 percent objective over the medium term.”

Reporting by Saikat Chatterjee; Additional reporting by Masayuki Kitano in SINGAPORE; Editing by Raissa Kasolowsky and Jon Boyle

Let’s block ads! (Why?)



Source link


SunnyMay 23, 2018
rupee-coin_650x400_71469425432.jpg

1min00



मुंबई: अमेरिकी केंद्रीय बैंक फेडरल रिजर्व की नीतिगत बैठक के नतीजों से पहले बुधवार को शुरुआती कारोबार में डॉलर के मुकाबले रुपया 25 पैसे गिरकर 16 महीने के नए निम्न स्तर 68.29 रुपये प्रति डॉलर पर आ गया. मुद्रा डीलरों ने कहा कि लगातार जारी पूंजी निकासी के बीच अन्य प्रमुख विदेशी मुद्राओं के मुकाबले डॉलर में मजबूती से रुपये में गिरावट देखी गयी. 

इसके अलावा , घरेलू शेयर बाजार में शुरुआती गिरावट और निर्यातकों से अमेरिकी मुद्रा की मांग आने से भी रुपये पर दबाव बना. 

टिप्पणियां

पढे़ं – वेनेजुएला कच्चे तेल का भुगतान रुपये में लेने को तैयार : राजदूत

मंगलवार को के कारोबारी दिन में डॉलर के मुकाबले रुपया 8 पैसे मजबूत होकर 68.04 रुपये प्रति डॉलर पर बंद हुआ था.

Let’s block ads! (Why?)



Source link


SunnyMay 23, 2018
Untitled-design-4-3.jpg

23min00


JOHANNESBURG — When it comes to a South African rand that has traditionally been volatile, knowing when it’s best to make an international transaction could become key to your business’s bottom-line. In this interview, Sable International’s James Edward explains how best to navigate forex waters and what local businesses need to bear in mind when moving money across the globe. – Gareth van Zyl

This special podcast is brought to you by Sable International. It’s a pleasure to welcome James Edward, who heads up the forex team at Sable International. Now, James, Sable International is known for offering a wide range of services, from Golden Visas, to getting mortgages in the UK, but you also have a forex division. How long has this forex division been operating for, and what type of clients does it service?

Sable International’s forex division has been in operation in South Africa since 2010, and recently joined forces with another intermediary called FX Capital, which was established in 2004. Sable International has been trading for the past 8 years in South Africa.

What type of clients do you typically service?

Our client-base consists of two sets of clients. The first set consists of individuals who are requiring personal services for themselves (and that includes expats and South Africans living offshore). The second set of clients would be our corporate companies who require services to facilitate their imports and exports, and the related foreign exchange flows that derive from those activities.

Which locations around the world does your forex service operate in, and can you give us an idea of how many clients and transactions you service each year?

We’re focused on the South African market, but Sable International does have operations in the UK and also in Australia. In each of those jurisdictions, there are separate branch offices and operations, which are subject to the laws and the regulatory authorities in those countries. We’re focusing primarily on the SA market. We operate under the auspices of the Financial Services Board (FSB), as well as the South African Reserve Bank (SARB), but our activities in SA are geared purely towards SA clients or residents. Included in that is also SA expats; South Africans who are living and working in other parts of the world.

James Edward, Sable International.

Over and above that, it also includes South Africans who, for example, have been out of SA for some time and consider themselves to be emigrants. That’s primarily what our client base consists of, from what we would call a private client perspective. Then, as I alluded to earlier, in SA we also deal with local businesses that require foreign exchange services to facilitate imports, exports, and other services. They could be earning foreign exchange offshore, through overseas customers who are paying them for services. Another example would be that the business is exporting products from SA and receiving foreign income for that. Alternatively, there are also SA companies that are importing goods from offshore and having to pay for them.

We have over 6,000 clients and process over 12,000 transactions per annum.

James, just on the topic of SA businesses. What is the best way for them to use a local forex provider in order to increase their international business’ effectiveness?

Well, let’s first talk about importers. SA has a fairly large reliance on imports. If you just think about electronics, textiles, clothing, vehicles, vehicle parts, just to name a few. Their purchases would be denominated in a foreign currency, and with the exchange rate volatility that occurs on a daily basis, this does introduce risk into their business.

For example, a clothing importer who has sold goods to a local chain-group will have sold them at a fixed rand price, and may have to pay for that in the future in a foreign currency, such as US dollars. He will need to try and cover that risk to protect himself against any adverse changes on the exchange rate, which would not only affect his profitability, but also affect the very existence of his business, especially in the event of a very large negative movement against his exposure.

So, there would be a lot of smaller and medium-sized businesses who would use Sable International for the likes of forward buying, for example?

Yes, that’s right, we have qualified consultants and people who have experience, and knowledge, and skills around advising businesses on how to manage the risk of the exchange rate volatility. We would assist them in terms of transacting and buying and selling their exchange. Also, this will help protect themselves by fixing those exchange rates by, for example, taking out a forward exchange cover is a very widely used protective mechanism to assist businesses in order to manage their risk in a world of uncertainty and volatility.

They want to make sure that there’s no pending or looming risks. You only have to think back in years gone by regarding the currency risks. The removal of the Finance Minister in December 2015 went on to cause a massive exchange rate move of some 20% to 30%, which in some instances could wipe out all the capital in a business because it wipes out all of their capital and forces them into liquidation.

Amid the recent rand strength in 2018, have a lot of your SA customers and businesses been locking in those mechanisms that you’ve been speaking about, in case the rand weakens?

Yes, that’s right. In fact, let’s go back a month before January 2018. You may recall in December, just prior to the ANC conference, there was quite a heavy weakening of the rand in anticipation of the uncertainty of the event that took place. Subsequent to that, with President Ramaphosa having been elected as head of the ANC and replacing ex-President Zuma as President of the country, there was what’s widely known as the ‘Ramaphosa Effect’ and the rand strengthened substantially after that. What that did was that it offered businesses the opportunity to lock-in improved exchange rates. And, as you rightly point out, the rand has weakened over recent weeks, which can seriously impact on a company’s profits, if they have large, uncovered, or unprotected exposures.

A collection of mixed denomination South African rand coins and banknotes sit in an arranged photo. Photographer: Waldo Swiegers/Bloomberg

What is your take on where the rand is right now? It’s obviously had a strong 2018 so far, but has weakened, as you’ve mentioned, in the last few days. Do you think that its strength is sustainable or is it just dollar weakness that we’ve seen in recent times?

I think that is a question that no one really has the answer to. What I can say is that if you had given businesses, for example, the option to buy dollars or foreign exchange in May 2018 at the current exchange rate of R12.30, when last year the average for the year was probably closer to R14.00, they would probably have leapt at that. So, I think one has to look at everything in context and I think the biggest danger in business is the uncertainty that volatility brings. The absolute level of the exchange rates is important but it’s the volatility that I think affects business the most. Trying to manage a business in an uncertain environment with high volatility is challenging. I think most businesses would be more concerned about the volatility and the uncertainty that lies in front of them.

But if I can also go back to your question of whether I think that the current level is sustainable. By merely looking at the fundamentals – such as the purchasing power parity model (or the Big Mac Index) – these fundamentals indicate that the rand is definitely undervalued at these levels. Perhaps a truer value would be closer to R11.00, and potentially even less than that. However, that’s in a perfect world where economic models are easily quantifiable and work out, but in practice they don’t. There are so many other factors involved, such as emotions and perceptions, and there are a lot of perceptions on the political level, the economic level, and questions about what the credit ratings agencies do. These are things that affect buyers and sellers of the currency, and we also mustn’t forget that it’s not just South African dealers, the rand is a very widely traded currency worldwide, with large volumes traded, and this is where the Rand’s value, to a certain extent, is determined.

The more uncertainty there is, the higher the volatility because people are unsure about where the correct levels should be. I wanted to add that we don’t just experience this volatility in SA, look, for example, at the UK and what the Pound has done versus the USD over the past couple of years, since the Brexit announcement was made. You’ll see that they’ve also experienced volatility, both in the Euro, the Pound, and the USD. So, this volatility is not restricted to SA. It is a worldwide phenomenon and it does make things more challenging and more difficult in the business environment.

Just talking about the business environment. What has the demand been like for Sable International’s forex services, have you seen that demand grow?

Yes, I think that Sable International has grown its business quite consistently and volumes have certainly grown, which is due to the marketing efforts and getting into the marketplace, and providing customers with good levels of service, and very competitive pricing. This is how we’ve been able to grow the business. Having said that, if one looks at those factors, those volumes are very dependent on the market conditions. For example, if the economy is growing then everyone can grow. The banks will grow their volumes and everyone will grow, but if the economy is static, as we have experienced over the past couple of years with very low GDP growth, then that is certainly going to affect the ability of the total market to grow.

We have been able to grow our volumes in spite of low economic growth which we ascribe to being a smaller player in the market but, at the same time, providing good service levels, product knowledge and experience to assist customers. I say that in the context for small to medium-sized businesses who really require a bit of handholding and assistance which, if one can provide, then they are very happy and grateful to get that assistance. Unfortunately, some of them do get lost in the banking system where, for example, they’re trying to get information out of call-centers and they’re not getting the personal service and the skills and knowledge levels that they really require to run their business.

We have also seen growth in offshore investment, where advisors have increasingly advised clients that it is essential to invest offshore for diversification. They are coming to us to assist their clients. SA citizens are able to invest up to R1 million offshore without a tax clearance and a further R10 million with a tax clearance. We process tax clearances for clients.

For anybody who wants to get in touch with your forex division, what is the best way for them to reach you guys?

We can be contacted on 021 657 2153 for Cape Town and Johannesburg enquiries and 031 536 8844 for Durban, also via email on [email protected] , we have offices in Johannesburg, Durban, and Cape Town. Our website is www.sableinternational.com/forex

This special podcast is brought to you by Sable International.

.module-cta
top: 0;
margin-bottom: 20px;
padding-top: 0px;
margin-top: 20px;

.module-cta
background-color: #1e81cc;
height: 140px;
position: relative;
text-align: center;
padding: 10px 20px 20px 20px;

.col-md-12
text-transform: uppercase;
text-align: left;
font-size: 25px;
color: #ffffff;
display: block;
line-height: 1.1;
padding-bottom: 15px;
padding-top: 10px;
padding-left: 15px;

.title
font-weight: bold;
text-transform: uppercase;

.module-cta .focus
background-color: #76c7ec;
color: #000;

.focus
display: inline-block;
padding-left: 0.1em;
padding-right: 0.1em;

.form-group.form-email
display: inline;

.module-cta .form-group input
width: 60%;
background-color: #FFF;
border: none;
height: auto;
font-size: 16.8px;
line-height: 1.33333;
border-radius: 4px;
padding: 16px 25.6px;

.module-cta .btn-default
color: #FFF;
background-color: #000;
border-color: transparent;
padding: 16px 25.6px;
font-size: 16.8px;
line-height: 1.33333;
border-radius: 4px;
border: none !important;
width: 25%;
height: 53px;
position: relative;

@media (min-width: 1200px)
.single-post .module-cta form .form-name,
.page-template-no-sidebars .module-cta form .form-name,
.page-template-default .module-cta form .form-name
width: 32%;

@media (min-width: 992px)
.module-cta .form-name
width: 32%;

.module-cta .form-name
width: 100%;

@media (min-width: 1200px)
.module-cta .form-group
margin-bottom: 0;

.module-cta .form-group
margin-bottom: 15px;

@media (min-width: 768px)
.form-inline .form-group
display: inline-block;
margin-bottom: 0;
vertical-align: middle;

.form-group
margin-bottom: 15px;

@media (min-width: 992px)
.col-md-12
width: 100%;

@media (min-width: 992px)
.col-md-1, .col-md-2, .col-md-3, .col-md-4, .col-md-5, .col-md-6, .col-md-7, .col-md-8, .col-md-9, .col-md-10, .col-md-11, .col-md-12
float: left;

@media (min-width: 992px)
.module-cta
padding: 18px 40px 0px;

@media (min-width: 1200px)
.module-cta form .form-email,
.module-cta form .form-email,
.module-cta form .form-email
width: 44%;

@media (min-width: 992px)
.module-cta .form-email
width: 42%;

.module-cta .form-email
margin-right: 10px;
width: 100%;

@media (max-width: 500px)
.module-cta
height: 225px;

.module-cta .btn-default
width: 40%;
margin-top: 0.5em;

Make Better Decisions. Start your Biznews Premium FREE TRIAL today.

Let’s block ads! (Why?)



Source link