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Living in a country that is a nett importer of goods, especialy consumer goods expsoses us to major foreign currency risks. If you ever wondered if you need to protect your future purchasing power against local currency depreciation, hopefully after reading here you will not wonder anymore.

It will be bareable if you only use staple items, but almost all levels of income earners will purchase imported consumer items, some just much more than others.

If you purchased any of the following items or are in the market to buy any of these, currency protection is a neccesity for your future. Vehicles, Ipads, mobile phones, electronics, clothes, furniture, stationary, alcohol, tiles, almost all items on take a lot and so I can go on.  If you think that “things” have become expensive, its because you are actually buying items in a foreign currency and just paying for it with your depreciating rands.

Protecting yourself requires that you gain excess to foreign currency and the following are available options.

  • Open almost anytype of investment and invest in foreign assets. Lumpsum or monthly debit order. (please beware of high fee products)
  • Adjusting your existing investment portfolios with increased offshore allocations.
  • Open a direct offshore investment account. You can start investing from as little is $1500

 If you have discresionary investments or post retirement solutions not limted by retirement regulations, you should consider increasing your offshore allocations, considering your individual exposure.

 

ZAR performance vs Major currencies SINCE 1994

1994 2000 2007 2014 2020
USD/ZAR  3.40     6.30     7.25  11.18  16.44
EUR/ZAR  3.80     6.11     9.40  15.00  19.30
GBP/ZAR  5.15  10.18   14.11  18.25  21.30
AUD/ZAR  2.40     2.60     4.30    7.11  11.80

 

Give us a call or send us an email and we will gladly assist you with all available options that are tailored to your individual needs and considers your individual financial situation. 

Jacques Hodsdon –  MCom Tax | CA(SA) | CFP ®   is a Director of Affluence Group and specialises in Investments, Personal and Business planning. For enquiries contact, jacques@afgroup.co.za or 013 752 6566