Impact of Rand weakness on our hobby

Discussion in 'General Discussions and Advice' started by moz, 15 Oct 2008.

  1. moz

    moz

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    I've been watching the rand lately and its currently sitting at R10.71 = $1.00:(. How is this going to affect our hobby. The cost of imports are going to sky rocket.
     
    Last edited: 15 Oct 2008
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  3. Megalodon

    Megalodon

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    Thats true, but the positive might be that the high import costs start to encourage local frag production and with captive propogation there is less impact on the sea... which is a good thing

    Also one might see local manufacturers of equipment and supplements scoring etc so yes it's tough but it's not the end of the world...

    It's effect on the petrol price though.... now thats something I'm going to be :( about
     
  4. moz

    moz Thread Starter

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    Luckily oil is at $74.54 a barrel.
     
  5. Warr7207

    Warr7207

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    It is so volatile at present, who knows where it goes. Sitting at 9.98 at moment
     
  6. Carl

    Carl

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    Hi guys

    The ripple effect of the Rand/Dollar in the Live stock imports are very very scary.

    Firstly all Cites permit are us$ based, the actual stock is US$ and the biggest part is the shipping allso us$ as well as fuel increases. The current oil price will still take a while before it will filter to aviation fuel and I doubt that we will ever see a ruduction in shipping cost.

    Sadly expect a 30% plus increase in live stock.

    Regards

    Carl
     
  7. Rod

    Rod

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    Hi some imported goods a friend of mine brought in were at R6.95 to the US$, do the maths!
    We are going to take strain. I guess the importers are looking at their current stock and will have to apply an immediate increase?
    Doesn't make sense to sell below current cost.
    Perhaps this will give local coral propagation a boost?
     
  8. Moolis Moolman

    Moolis Moolman Pet Stop SA Sponsor

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    HiALL

    The weaker rand will actually positively impact the hobby in the long run.

    My reasoning:
    1. Service, quality and knowledge will separate the good from the bad.
    2. the FAST BUCK retailer (store and on line) will fall through the cracks
    3. When (AND IT WILL) the rand strengthens again the hobby will be stronger, more resilient and more customer service orientated.
    4. Hobbyists will do more homework them selfs, thus be better prepared for their own reef aquarium and more informed when advising other hobbyists!

    Just my 2 cents

    PS. But in the mean time we will see raised prices and fluctuations (landed 2 shipments -1 in the morning the other midday - with 7.8% $ difference!!)
     
  9. Alan

    Alan Admin MASA Contributor

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    We all in for a roller coaster ride at the moment, R/$= 10.41 this morning.
     
  10. SIMS

    SIMS

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    Agree with Alan...and our political fiasco is not helping either...
     
  11. jacquesb

    jacquesb Retired Moderator

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    Hi All - I think this is just "knee-jerk" reaction to the current stock exchanges. Many people dealing in currencies are now selling - soon some other people will be buying the Rand as a commodity again, increasing the value. The current increase in the RAND/$ exchange rate will not stay around for long...

    Personally, I think that this whole market volatility is a good thing for South Africa in the long term....

    I have had Macro Economics as a Major in High School, and was ALWAYS fascinated with the stock exchanges of the world.... Have been tracking the whole RAND/$ echange rate for a very long time....

    I think that in a few days' time the Rand / $ would be down to between R8.50-R9 to the dollar... and over the Christmas season it might even be in the low R8's to the $....

    Just be patient - bear it - people should just not panic....

    The Marines importing should not be impacted in a HUGE way, because as less people buy marines, the demand will be lower, forcing importing of marines to decrease as well, which will lead to the suppliers of marines in the world, to drop their prices as well, to encourage demand again......... So - it's a whole circle-process....

    Just be patient..... Like in keeping marines - only bad things happen fast in finance as well...
     
  12. Alan

    Alan Admin MASA Contributor

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    I fully agree with this, that's why i called it a roller coaster, as the world stands at the moment SA is not a bad place to be, yes we have our political fiasco at the moment, but our large financial institutions are standing firm. As for our political situation the split in the ANC government can only be good for the country and democracy.
     
  13. jacquesb

    jacquesb Retired Moderator

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  14. HenkHugo

    HenkHugo

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    I'm very lucky. we have a shipment docking on the 20th that we paid for some time ago... lots of new stock at the lower exchange rate. The only problem is that customs works out your VAT and duties at the current exchange - not what you paid....
     
  15. Shaun

    Shaun Retired Moderator

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    When your supplier send you an SMS saying "All current and pending orders on hold till further notice" you start to get worried.:(
     
  16. HenkHugo

    HenkHugo

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    wow Thalion - thats not cool....
     
  17. Mathewis

    Mathewis

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    I have a Bcom Economics degree and I have to agree with you.:thumbup:
     
  18. Shaun

    Shaun Retired Moderator

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    Tell me about it.:(
     
  19. HenkHugo

    HenkHugo

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    from fin24

     
  20. SIMS

    SIMS

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    R/$ 10.28[​IMG]R/€ 13.79[​IMG]R/£ 17.76

    now on www.iol.co.za

    seems to be bouncing around...
     
  21. shiks

    shiks

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    Just reached 10.85 to the $ abt 10mins ago and had a supplier come back to me with a 3k change in price on goods reserved yest at 9.2 to the $ ...this is madness.....
     
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