What Expats Should Know About Their Rands Back Home
If there’s one sector which has undoubtedly become more complicated, adventurous and rather bipolar it’s undoubtedly the financial services sector – in particular those involved in investment and foreign exchange.
Of course, those in the know like Rand Rescue, are quite used to market fluctuations, upheavals and surprises along the way and we understand that projections are never cast in stone. Instead we need to cater for any and all eventualities and provide solid financial advice which is honest, reliable and dynamic.
So, what can we tell you about the South African political situation and its effects on the Rand that you don’t already know? Let’s take a look…
A political imbroglio – untangling a mess takes time
We’re all aware that South Africa recently earned our first junk badge in more than a decade. The implications of this, of course, are not always easy to gauge.
One thing is certain, however – the political imbroglio within which South Africa is currently immersed is one from which the country will not swiftly untangle. Had the credit status downgrade of the nation been down to one particular incident behind which the powers that be could hold hands, offer reparation and work together in seeking an outcome the story may have been different, but this is not the case.
What we’re seeing before us is a political web of intricate connections, rivalries, conspiracies and, of course, the dreaded corruption which has littered all such disorderly and competitive political agendas throughout the eons. It is near impossible to gauge the state of affairs at present – the only thing we can be sure of is that the discord and disarray present throughout the South African political, financial and social sectors are clear.
Within the ruling party the tectonic plates of division have clashed together in a mighty blow which has sent shockwaves to the outskirts of society. The rattle and hum reverberating from the grind and bash within ruling politics are releasing tremors throughout society – many of which have become unbearable fault lines of their own design.
The shockwaves of discord – South African industries in distress
It seems these shocks have affected most every part of South African society. Although the Energy industry has taken great strides in trying to marry the restrictions of financing, public health and safety and the need for clean energy and greater demand for public services – these ideals seem shot by a political system which seems to discard the opinion of intellectuals and scientists in exchange for easy money and foreign policy.
The details are widely available. There are nuclear deals, fracking deals and on top of it all a junk status which has plummeted the budget for public service delivery in the gutter.
And what of the Department of Basic Education as well as the Department of Higher Education and Training? What recourse does this department have for salvaging South Africa from the greatest debt we’ve ever had – the debt towards our children.
We will not open debate into fees falling, universities burning or books not being delivered – what we can say is that the educational system is not providing a platform for South Africans of all creeds to excel. It is an unfortunate reality that those who should lead in future would not have the tools and know-how to lead if they are not given the resources, environments and tools to excel. The frustration is palpable from the shacks of the township to the mansions of Clifton – South Africa is failing its youth.
This doesn’t mean that there aren’t individuals and institutions willing to continue the fight – but as with our other sectors and as with all business, the rot and rust of issues prevalent on the outside and exterior of a system is inherent and reflective of the leadership at the top. Without true and cohesive governmental intervention, the few fighting the good fight are at a loss. And, to tell the honest truth – those few are not as few as you’d like to believe – there are truly many a South African raging at the state of affairs. But none are equipped to dethrone the power systems at play up top.
Shall we discuss the National Treasury? Rather not – we all know how that battle has played out thus far. How about Public Service and Administration, Telecommunications, Transport, Water and Sanitation, Health or Communication? Should we even touch on Government Communication and Information Systems (GCIS)?
We could overload you with more angst and fury given South Africa’s current state of affairs or we could simply be honest and say that whichever way this coin will turn – it will be a long and winding road.
Take your funds with you – the smart option for South African expats
As a financial services provider specialising in expat finance, we honestly cannot serve you as client or prospective client without the honest truth. What is this truth? Things are not looking up soon.
Indeed, the Rand could stabilise again, the president might get overthrown, perhaps a miracle is on the horizon. We all remain hopeful of a miracle and perhaps such a miracle is indeed in our future. But judging by sound analysis, economic insights and political observation – that future is still a way of.
The best advice we could offer as your partner in cross-border finance is to keep your funds where it is safer, can earn a higher interest and where there are incentives in place to boost retirement savings.
Contact us for guidance on moving your funds to your new home. We can assure you of unbiased, sound and accredited advice focused on your needs as a South African living abroad.