Make Money Mondays

A bigger picture for the rand as emerging markets lose favour globally

Is there such a thing as an objective value of the rand, one might ask? Is there such a thing as objectivity?

Andrew Flavell, Wealth Manager at AlphaWealth, puts the term in context. He says South Africans are an extreme lot - they seldom find the middle ground. Money becomes such an emotional subject - especially around dinner tables with family and friends. And that's what led him to to this objective study on the rand.

Rather present the facts and try and portray a more objective view of the rand - and that's the study I did. It's not trying to forecast anything but really it's trying to explain what the make-up and the drivers of the rand are

Andrew Flavell, AlphaWealth

Flavell has set about creating different parameters to those often used to determine our currency value.

South Africans compare ourselves to the pound, euro and dollar and if you look at balance sheets, demographics and make-up of those economies, they are not anything similar to South Africa. So we need to look at our peers.

Andrew Flavell, AlphaWealth

And our peers, he says, are Zambia , Brazil and Russia.

We must realise it's been an emerging market currency sell-off - and it's been a perfect headwind for those countries that have been commodity backed.

Andrew Flavell, AlphaWealth

Listen as Andrew explains why these currencies have been devaluing. For the rand there is a much bigger picture - the macro theme globally shows emerging markets are out of favour.


Recommended

by NEWSROOM AI

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
I still drive a 2000 Camry. I don’t like debt - Chris Schutte (Astral Foods CEO)

I still drive a 2000 Camry. I don’t like debt - Chris Schutte (Astral Foods CEO)

The Money Show’s Bruce Whitfield interviews Schutte about his attitude to money (hopes and fears, successes and failures, etc.).

Renowned chef and restaurateur Bertus Basson on food... and money!

Renowned chef and restaurateur Bertus Basson on food... and money!

The Money Show’s Bruce Whitfield interviews Basson about his attitude to money (successes and failures, etc.).

Celebrity chef Siba Mtongana gets vulnerable, opens up about money

Celebrity chef Siba Mtongana gets vulnerable, opens up about money

The Money Show’s Bruce Whitfield interviews Mtongana about her attitude to money (hopes and fears, successes and failures, etc.).

Financial educator Simon Brown comes clean about his own money habits, beliefs

Financial educator Simon Brown comes clean about his own money habits, beliefs

The Money Show’s Bruce Whitfield interviews Brown about his attitude to money (hopes and fears, successes and failures, etc.).

Funny-man John Vlismas gets dead serious about money

Funny-man John Vlismas gets dead serious about money

The Money Show’s Bruce Whitfield interviews Vlismas about his attitude to money (hopes and fears, successes and failures, etc.)

Absa Chairperson Wendy Lucas-Bull opens up about money

Absa Chairperson Wendy Lucas-Bull opens up about money

Bruce Whitfield interviews Lucas-Bull about her attitude to money (hopes and fears, successes and failures, etc.)

Popular articles
I was not introduced to Ajay Gupta - Grootes

I was not introduced to Ajay Gupta - Grootes

Stephen Grootes says he believes former Eskom CEO Brian Dames when said he was not formally introduced to the Gupta family.

Why the PAC wants South Africa renamed Azania

Why the PAC wants South Africa renamed Azania

Pan Africanist Congress's Narius Moloto explains why it supports the name Azania, a word which he says has Arabic origins.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

WATCH: Zuma denies crisis at Sassa, won't evaluate isiphithiphithi (chaos)

WATCH: Zuma denies crisis at Sassa, won't evaluate isiphithiphithi (chaos)

Zuma says he cannot be expected to act against Minister Bathabile Dlamini on social grants matter now before the ConCourt.

Divided views on impact of minimum wage on economy, unemployment

Divided views on impact of minimum wage on economy, unemployment

Deputy President Cyril Ramaphosa announced that the minimum wage of R20 per hour is expected to be implemented by May 2018.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...