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 What happens to your finances when the interest rate drops?

An interest rate cut simply means that the cost of borrowing is lower, and therefore cheaper. This is sometimes a tool used to encourage economic growth. But what does such a cut mean for your finances?

Raise a deposit for your house in 5 steps

If you’re a first-time home buyer, you could be lucky enough to be  approved for a 100% bond, but if you aren’t, a 10% deposit might be required. This  could be a daunting prospect.  However, a few financial tweaks to your lifestyle and spending habits could get you a foot in the property door and, once you’ve purchased a property, significantly reduce your long-term bond repayments.

Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

Deals

Cash Rewards up to 20% when you swipe your Absa Card at Spar

Price: Available on request
When: Daily
Where: Nationwide

The Royal Elephant Hotel Valentine's Day Special

Price: Available on request
When: 14 February 2020
Where: Centurion

Premier Hotels Vegan Dinner Special

Price: R225 per person
When: Monthly
Where: Nationwide