Guiding consumers since 2009

Global crisis continues

By Staff Writer

Compare banks and save with Justmoney

Global crisis continues

Many of the effects that the global economy is having on us are manifested via the value of our currency in relation to other major currencies.

We import way more than we should and this leads to us being very susceptible to currency fluctuations.

There have been a number of stories regarding the Rand. Fin24 reports that the Rand was much firmer in early trade this morning (Friday 14th November 2008) but that we were still to a large extent bound by movements in the Dollar.

They also cautioned that the Russian Ruble was under pressure and if it collapsed that could trigger a reactionary 50c drop in the price of the Rand to the Dollar.

The Times reports that the Rand has been hit by international volatility, and that we should be prepared for this volatility to continue. As prices rise with a depreciating Rand, our imports become more expensive and this can place inflationary pressure on the local economy.  Also when international investors get burnt at home they pull their internationally invested money back to offset their domestic losses. This can lead to runs on local bourses. Bloomberg reported that the Rand had firmed against the Dollar in early trade today.

The global economic slump is in full force now with Germany officially entering a recession according to The Dispatch.

Business Day reported that world leaders were to meet in Washington tomorrow to try and turn around the troubles. Business Day also brought us a report that the Organisation for Economic Co-operation and Development (OECD) cut its growth forecasts for the second time this year and encouraged governments to take more stimulus measures to stave off the slowdown before it becomes a full blown recession.

The Economist wrote a feature article looking at the recent economic events and asking if this was a downturn or a full on 1930's style depression. The 1930's depression was in many ways caused by inappropriate responses to the crashes of 1929. Policymakers went too far and caused the entire system to collapse. There is a possibility of this happening again, although many market watchers are aware of the historical similarities and are cautioning policy makers against taking extremist measures.

In an informative article today iAfrica compares the various ways that you can get a bit of cash to tide you over until you get paid again. The article looks at overdrafts and credit cards and compares the most savings efficient ways of using them. The Times reports that the SA Savings Institute has released figures showing that we have a 'negative' savings rate, which means that we are actually now spending some of our savings, and not actually saving as a whole at all. At the end of the day it means that we should take it easy this festive season and neither overspend or take too much credit. The best thing might be to get a savings account now and just wait it out until the January sales.    

Recent Articles

Featured Everything you should know about the tax auto assessment

In 2019, the South African Revenue Service (SARS) launched a system, which was dubbed an “auto assessment”, to assist taxpayers with their annual tax returns. But what does this system entail, and how will it impact you?

What does it mean to be a registered Financial Services Provider?

You may have noticed that financial institutions state that they’re registered Financial Services Providers (FSP). But what does this actually mean, and how does this benefit you as a consumer?

Should the retirement age change?

Across the world, people are retiring later than they used to. However, retirement products are centred around set retirement ages at which point you’d be able to access your retirement savings. But how applicable is the current retirement age in South Africa?

Everything you need to know about wills

Death can leave a lot of confusion and chaos. What happens to your possessions when you die can have a profound effect on those you leave behind. But you can soften the impact by drawing up a will.

Deals

Get 30% off your gym membership with Absa student account

Price: Available on request
When: Daily
Where: Nationwide

Get 10% discount on Rentalcars.com

Price: Available on request
When: Daily
Where: Worldwide

Get up to R5 back in rewards points when buying fuel

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions