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.

CapeTalk 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 CapeTalk community a safe and welcoming space for all.

CapeTalk 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.

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

Read More
Michael Jordaan (ex FNB CEO, ex Chair of Mxit) bares his soul about money

Michael Jordaan (ex FNB CEO, ex Chair of Mxit) bares his soul about money

The Money Show's Bruce Whitfield interviews Rain Director Michael Jordaan about his money beliefs and history.

Discovery CEO (and founder) Adrian Gore bares his soul about money

Discovery CEO (and founder) Adrian Gore bares his soul about money

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

Geek God Aki Anastasiou opens up about money

Geek God Aki Anastasiou opens up about money

Bruce Whitfield asks the famed tech reporter about his attitude to money (hopes and fears, successes and failures, etc.)

Wits economics lecturer Lumkile Mondi gets personal about money

Wits economics lecturer Lumkile Mondi gets personal about money

Sumitra Nydoo (on The Money Show) interviews Mondi about his attitude to money (hopes and fears, successes and failures, etc.).

Absa’s Songezo Zibi comes clean about money

Absa’s Songezo Zibi comes clean about money

Arabile Gumede interviews Zibi about his attitude to money (beliefs, hopes and fears, successes and failures, etc.).

Michael Mol (SA’s hunkiest, most well-known doctor) bares his soul about money

Michael Mol (SA’s hunkiest, most well-known doctor) bares his soul about money

The Money Show’s Bruce Whitfield interviews Mol about his money beliefs, hopes and fears, successes and failures.

Popular articles
An expert guide on 'hotwifing' and 'cuckolding' in the bedroom

An expert guide on 'hotwifing' and 'cuckolding' in the bedroom

Clinical sexologist Dr Eve shares insights into sexual fetishes and how partners negotiate them in their bedroom and relationship.

[Watch] John Maytham shuts down victim shamer on air

[Watch] John Maytham shuts down victim shamer on air

A caller wanted to know what the alleged victim had done in order for Grace Mugabe to assault her.

Cape officials to harvest 500 million litres of new water a day

Cape officials to harvest 500 million litres of new water a day

Mayor of Cape Town speaks to CapeTalk's Kieno Kammies about plans to provide more water amidst the ongoing drought.

LISTEN:  Reformed car hijacker sheds light on hijacking underworld

LISTEN: Reformed car hijacker sheds light on hijacking underworld

This reformed car hijacker was convicted for hijacking, robbery and murder and served almost 16 years jail time. Hear his story.

Journos walk out of Bathabile Dlamini's briefing after 2 hour wait

Journos walk out of Bathabile Dlamini's briefing after 2 hour wait

EWN's Gia Nicolaides says journalists walked out of the media briefing on social grants after waiting for hours for her to arrive.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.