Esquire Technologies explains how long the rand needs to be trading at stronger levels before consumers can expect tech prices to come down.
While the South African rand has been trading stronger against the US dollar, euro, and British pound, it will take more than a few days of good exchange rates for tech prices to come down.“The rand must trade at stronger levels consistently for several months before consumers see any noticeable changes in electronics prices,” Asgar told MyBroadband.
This means South Africans are paying almost triple for imported electronics than 13 years ago just due to the exchange rate. That’s not counting VAT, which increased from 14% to 15% in 2018. “Political analysts believe the events from this weekend pretty much secured a Trump victory, and therefore, Trump policy needs to be priced in — including larger deficits and import tariffs,”Botes believes that while volatility will increase, the rand will continue to strengthen as the US Federal Reserve closes in on its 2% inflation target, bringing with it the prospect of interest rate cuts.
However, with positive signs from the US FBI that the shooter appeared to have acted alone and there being no further safety threat, this risk aversion will work its way out of the system.However, Asgar said that for consumers to see a real impact on electronics prices, the rand needs to strengthen to levels last seen in 2012, 2015, and 2018.“It has to remain at those levels for at least six to 12 months to make any significant impact in the longer term,” he said.
Cassim said the main reason most importers have come to rely on forward cover is to hedge against the rand’s volatility.
Asgar Mahomed Bianca Botes Citadel Global Esquire Headline Investec Mahomed Cassim Hardware
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: Cold Fronts Bring Wind, Rain and Snow to South Africa - South African News BriefsWarnings as Cold Fronts Batter South Africa
Read more »
South Africa: Keyshia Cole To Tour South Africa This SummerSeasoned concert organizers Glen21 Entertainment today confirmed that the iconic R&B songstress Keyshia Cole will be touring South Africa later this year.
Read more »
South Africa: Cyril Ramaphosa's Speech to Parliament Listed South Africa's Old ProblemsAnalysis - South African President Cyril Ramaphosa's opening of parliament speech successfully captured the spirit of a diverse and cohesive multi-party government ready to get down to work. But it failed to tell South Africans how the new dispensation will do things differently, and better.
Read more »
South Africa: Expectations Versus Reality - the Use of Generative Ai in South Africa's 2024 ElectionAnalysis - By now you've heard that 2024 is the ultimate election year. With over 60 countries around the world heading to the polls, concerns about generative artificial intelligence (AI) and its effects on electoral integrity have received plenty of media coverage.
Read more »
South Africa: Higher Education Faces Many Challenges in South Africa - 3 Priorities for the New MinisterAnalysis - When South African president Cyril Ramaphosa named Nobuhle Nkabane as the minister of higher education on 3 July 2024, many people I know in the sector had to Google her name. Dr Nkabane had been deputy minister of mineral resources and energy since August 2021.
Read more »
South Africa: Chinese E-Commerce Companies Popular in South AfricaRotondwa Mbadaliga is a self-professed 'shopping addict.' The 25-year-old South African fashion influencer says she is a huge fan of Chinese-linked e-commerce companies Shein and Temu because she can get the latest trends at the cheapest prices delivered straight to her door.
Read more »