Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting ZAR rates when buying £200,000 during the high and low points of the past 3 weeks:
|Currency Pair||% Change||Difference on £200,000|
The Rand got off to a flying start to the week as investors were drawn in by the announcement that Cyril Ramaphosa will be succeeding President Jacob Zuma as the new leader for the African National Congress. The hope is that with Zuma’s departure, the ANC will find new credibility as Ramaphosa will take it upon himself to cleanse the party of the deep lying corruption allegations.
The expectation of Ramaphosa’s victory prompted a near 7% drive from the ZAR against the Pound since the start of the December, with GBPZAR falling to the high 16’s from the mid 18’s. Making a £200,000 purchase 240,000 ZAR cheaper.
Rates have stagnated since however as the markets begin to digest the task at hand. The main question mark remains just how efficiently former lawyer Ramaphosa can purge the ANC of Zuma’s influences, which could potentially be kicked off with an inquest into President Zuma dealings along with Finance Minister Maluisi Gigaba.
There have already been talks of a “Truth commission” to be set up in a bid to provide 3rd party, non-arbitrary investigation into the ANC in the New Year. Their success will no doubt play a key role in ousting Zuma in the next general election vote set for 2019. Naturally it will also dictate Rand exchange rates for the foreseeable future too.
Given Sterling is still benefiting from the higher levels we have seen this year against the South African rand, with Brexit pressure easing ever so slightly as we go into the festive period, if you are looking to buy ZAR with Pounds it may pay to make a move sooner rather than later, given the trend is set for the ZAR to start 2018 positively in the eye of investors, making it more expensive to buy.
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