Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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I see inflation is fighting back after having recently touched 6.3% and it is back now to 6.1%. This is, despite the Rand going backwards by about 10% after President Jacob Zuma fired Pravin Gordhan. The Rand is showing, what some South Africans consider a surprising strength since then, but that neglects the fact that the American currency has been globally weak for the last month or so – losing against all currencies – so it is not really a reflection of any particular good news, or otherwise in South Africa.
In March the South African Reserve Bank estimated that the average inflation for South Africa would be 5.9%, but obviously to a large extent it depends on how stable the Rand remains. Right now, we are not that affected by the junk status that the Rand has recently acquired, because we are still at relatively high levels within the junk status and we are not yet in a position where the overseas entities that own South African bonds are forced to sell them due to their lowered status.
Posted by Michael de Broglio on Wednesday 24-May-17
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Comments
Dune said:
on Friday 02-Jun-17 11:20 AM
Great new, for now, at least, until our president decides to gamble with millions of South African's lives again by making his senseless decisions.
brumilde said:
on Thursday 01-Jun-17 12:36 PM
the rand, what is the rand. one day we will ask to be paid via peanuts as the currency will be higher than the rand. the rand goes down, the mood of the south africans along with it
Jolene said:
on Thursday 01-Jun-17 12:10 PM
This is great news, hopefully this does not encourage our president to make more stupid decisions.
Helen said:
on Thursday 01-Jun-17 09:48 AM
I do not know about the inflation but the cost of leaving in South Africa has increased dramatically. What we could afford last year or years before with junk status this years - prices for food/ petrol/ paying back dept - there is no money left for any luxuries. Watching Cart Blanch other day, the prices for food has increased by 30% from November 2016 and I think that they are still increasing. I have notices that the interest on dept has not changed yet but my payments to house and car insurance and medical aid has increased pretty much.
Cornelie said:
on Wednesday 31-May-17 02:20 PM
Don't know where it will all end we are paying so much just to live.
Sinead said:
on Wednesday 31-May-17 11:07 AM
It amazes me that the rand is still fairly stable after the "junk status" announcement. I do hope something can be done to better our country again.
I wish we could go back in time where R5 was a lot of money :(
Jadine Richards said:
on Wednesday 31-May-17 08:50 AM
The fact that we are not really feeling the effect of the downgrade as yet concerns me. It has far reaching implications and these will soon come to a head. I hope that when that time does come,the people aren't too far removed from the cause and remember exactly why they are struggling.
Brenda van den Bergh said:
on Monday 29-May-17 09:37 AM
I am still very saddened by the "junk status" South Africa was given. It makes me look back to years ago when we were THE best country and everything was run smoothly. Not that I think it was ever perfect, but it was run well. Things could have turned out much better if apartheid never existed. It was due to apartheid that things turned sour. Now generations later it is catching up to those of us who were not involved at all.
Zindy said:
on Monday 29-May-17 09:10 AM
That's good news, If inflation is controlled, it can be a positive force in the economy. It can stimulate the economy, mitigate recessions, provide profits for businesses, raise wages for workers, and reduce the real amount of debt.
Liz said:
on Friday 26-May-17 05:54 PM
This comes as a welcome breath of fresh air regarding our current economic situation, however, brief it may be.
Melissa van Tellingen said:
on Friday 26-May-17 03:19 PM
Great News for a change however I think we will not feel the change at all.
Ashleigh said:
on Friday 26-May-17 01:22 PM
Some good news for South Africa for a change but whether we feel the difference is another thing.
Melissa said:
on Friday 26-May-17 12:11 PM
Brilliant news, lets hope it stays this way
Sarah said:
on Friday 26-May-17 11:54 AM
Finally some good news for South Africa, I hope we can get of junk status. I just hope our rand can stay strong
Prishani said:
on Friday 26-May-17 09:54 AM
It appears that this is something positive for now! Our country really needs this, however there is no doubt that there are other factors that need to be considered which may not allow us to enjoy this for too long!
Thabitha said:
on Friday 26-May-17 09:34 AM
I hope South Africa will not be affected by the junk status anymore and I just hope Zuma learned from his selfishness.
Daniella said:
on Thursday 25-May-17 02:25 PM
Its good news definitely, we should enjoy it while it lasts.
Angelique Jurgens said:
on Thursday 25-May-17 01:51 PM
Watch how new minister of Finance takes credit for it! None the less - happy about it.
Michelle said:
on Thursday 25-May-17 08:22 AM
Good news to us for now. Its just sad that its not going down more often.
Joyce said:
on Wednesday 24-May-17 05:41 PM
I think it is not yet easy to say it is good news, since there are lots of things happening in South Africa which are affecting the inflation.
Lourien said:
on Wednesday 24-May-17 05:25 PM
Our rand will forever go up and down, lets just hope it gets stronger by some surprising event. Your weak rand is all because of our government and we certainly know that no amount of strikes will change that, I think everyone should stop paying tax, if the whole country stops paying tax the government will fall and they wont be able to waist our tax money that we work hard for and they waste. Maybe start supporting parties who will uphold their promises in fixing the roads and schools...Rather pay local services than the government.
Henrietta said:
on Wednesday 24-May-17 12:35 PM
It is good news for now, but is the American currency being weak a good thing? I don't know how we will survive if/when junk status is going to affect us badly, it's like we waiting for the coin to drop.
Angelique P said:
on Wednesday 24-May-17 10:03 AM
It’s good to hear. I just hope that this will keep going. But you'll never know what the president decides tomorrow and then everything go bad again. We just need some stability in South Africa.
We have so many advantages they just need to know how to use them efficiently.
Clare said:
on Wednesday 24-May-17 09:36 AM
This is good, but for how long? With the on going crime and on going battle with our government is also contributing to the down grade, I really hope something gets done. All South Africans regarded of Race and Gender we all deserve a Great land to call home.
Jessica Apfel said:
on Wednesday 24-May-17 09:05 AM
I dont think that we will truly feel the effect of a lower inflation rate just yet - with the repo and prime interest rate at a staggering height the average South African will still feel the pinch.
Mathilda said:
on Wednesday 24-May-17 08:33 AM
This is good to hear for now ,until we are at that point where the Overseas entities that own SA bonds start selling theme ,What are we going to then ?
We need to get a solution now before we get to that point
Jadine E said:
on Wednesday 24-May-17 08:21 AM
We can be happy for only a certain time.....until it really does start affecting us.
Alexis said:
on Wednesday 24-May-17 08:02 AM
Suppose that is a very good thing, do not know much about currency and its workings....Considering we are at junk status and the fact it has not affected us too badly, as said is a good thing. The problem however, is the day that it does and business' start pulling out....what are we to do then?
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
