The rand is more stable than any time since 1999 and poised to strengthen

We’ve become used to the rand being just about the most volatile currency in the world. However, 2014 is shaping up be the least volatile year for the rand since 1999, according to John Cairns, Currency Strategist at RMB.

“The range between the rand's highest and lowest points so far this year is only the 13th biggest of the major currencies," says Cairns. “It’s usually top of the log but, so far, the range has been just over R1. The rand's average range is around R2.65.”

A more stable rand is good for the economy as it gives businesses certainty.

“We believe the rand is undervalued,” says Cairns. “Exports are growing at a relatively decent pace while import growth has really slowed down. The balance of payments (i.e. difference between imports and exports) should be correcting.

“We expect the rand to strengthen to R10.50 to the US dollar, but there are lots of risk to this prediction,” admits Cairns. “It depends very much on what the US Fed has in store for us.”

Cairns believes the rand will strengthen. Currency Strategist at Barclays Africa Michael Keenan (sort of) agrees. Click here to learn more or here to learn why petrol will be much cheaper by Christmas if Cairns' and Keenan's forecasts pan out.

Listen to the Soundcloud clip for more detail.

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
Great ideas, wrong time

Great ideas, wrong time

The iPhone, Ebay and Facebook, we all know these killer applications but what about their very similar predecessors that flopped.

Best bank ad ever? Andy Rice reviews Investec’s “you’re more than data”

Best bank ad ever? Andy Rice reviews Investec’s “you’re more than data”

The Money Show’s Bruce Whitfield interviews the advertising expert about the best and worst new advertisements.

Save 20% on groceries (buying together is power!)

Save 20% on groceries (buying together is power!)

Struggling to make ends meet? Bruce Whitfield interviews Nokwethu Khojane, cofounder of group buying company Lakheni.

Is the qualification real? Check out this ingenious, real-time verification tool

Is the qualification real? Check out this ingenious, real-time verification tool

The Money Show’s Bruce Whitfield interviews Logan Attorneys Consumer Law Specialist Stephen Logan.

Why the rand is getting stronger (and how much stronger it can get)

Why the rand is getting stronger (and how much stronger it can get)

Michael Keenan, Currency Strategist at Barclays Africa, discusses our volatile currency.

Why petrol will be (much) cheaper by Christmas (if the rand holds)

Why petrol will be (much) cheaper by Christmas (if the rand holds)

Oil is getting cheaper despite the Middle East going to hell in a hand basket. Here’s why…

Popular articles
Best bank ad ever? Andy Rice reviews Investec’s “you’re more than data”

Best bank ad ever? Andy Rice reviews Investec’s “you’re more than data”

The Money Show’s Bruce Whitfield interviews the advertising expert about the best and worst new advertisements.

Police apparently mulling over warrant of arrest after Grace Mugabe a no-show

Police apparently mulling over warrant of arrest after Grace Mugabe a no-show

EWN understands that lawyers representing the Zimbabwean first lady are negotiating with officers at the Sandton police station.

[LISTEN] 20-year-old SA woman traumatised by Grace Mugabe's assault

[LISTEN] 20-year-old SA woman traumatised by Grace Mugabe's assault

Gabriella Engels says she is saddened by people who are calling her names on Twitter before they understand the full story.

Traffic gridlocked as Imizamo yethu residents make their way to Cape Town

Traffic gridlocked as Imizamo yethu residents make their way to Cape Town

About 40 minibus taxis, in a convoy at a very low speed, are transporting Imizamo Yethu residents into CT for a planned protest.

Words you’ll hear: Grace Mugabe's latest nickname

Words you’ll hear: Grace Mugabe's latest nickname

Find out why Zimbabwe's First Lady should be dubbed with the moniker 'extension cord'.

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.).

Ocean Basket gives franchise owner the chop after assault video

Ocean Basket gives franchise owner the chop after assault video

The man was immediately divested of his shares and is no longer part of the group, explains Ocean Basket CEO Grace Harding.

WATCH: Cape schoolkids 'starstruck' after Trevor Noah,  Charlize Theron drop by

WATCH: Cape schoolkids 'starstruck' after Trevor Noah, Charlize Theron drop by

Oaklands High principal Reza Patel says it was an extremely exciting experience for both the learners and staff. We can imagine!

CoCT explains new electricity tariffs

CoCT explains new electricity tariffs

Following residents concerns over new electricity tariffs and properties being re-evaluated, Johan van der Merwe provides clarity.