Many attribute the stronger rand to the recent change in political leadership. Our new president, Cyril Ramaphosa, has people all over South Africa hopeful of not only a stronger rand, but also a better future.
The drop in fuel prices, credited to the rand’s performance against the US dollar, is also something many South Africans are cautiously optimistic about. Many South Africans use paraffin for cooking, light, and heating. The price of fuel is not something only motorists are affected by. The price of petrol goes up, the cost of public transportation, as well as the transportation of goods, rises. Which, of course, means the inevitable strain on your wallet. A weaker rand means higher prices, whereas a stronger rand means lower food prices, lower fuel costs and, of course, lower inflation.
Naturally our consumers have been taking advantage of the stronger rand. According to economists, many South Africans have been making use of the cheaper prices and lower interest rates. The number of people buying new cars and property have also in increased, confirming the level of comfort and optimism by consumers.
However, there are those who believe that a weaker rand has its own advantages. Tourism accounts for a considerable amount of the country’s revenue. South Africa is one of the most beautiful tourist destinations in the world, it’s also quite affordable to foreign tourists. Having a stronger currency could have a negative impact on this. Imports and exports are also something to consider. Some are convinced that having a stronger rand affects them negatively in international markets, believing the fallout could be harmful on exports.
With that being said, the ordinary South African citizens are quite pleased with the stronger rand. We’re in the middle of a water crisis, we’ve been having an energy crisis for years. We’re due some good news.