How to trade South African currency

In this article, a rough guide to trading South African currency will be discussed and provided. Currency trading can be a profitable business if conducted properly. This article will provide a brief guide to trading South African currency.

South African currency

What is the currency? The exchange rate:
1 South African rand = 0.136881 U.S. dollars. This is the current value of the South African Rand and with any currency trading in any country, the exchange rate always needs to be considered. There are many ways to trade currency, you can use the internet, you can invest in shares in stock markets and buy and sell currency yourself at your local post office. Depending really on the amount of money you want to trade wlli dictate the method you use to trade.
South African currency: The history
In 1961 until 1982, a rand was worth 1.40 dollars because of the inception of apartheid. Following the election in 1994, it is seen that the depreciation continued for the Rand value. This downward slide could be attributed to a range of factors: - South Africa's worsening current account deficit
- Inflation which continued for a five-year high
- Escalating global risk aversion as investors' concerns over the spreading impact of the sub-prime crisis grew
- A general flight to "safe havens", away from the perceived risks of emerging markets. The situation has since stabilised and the rand value has increased to a more stable level.

The trade

A guide to trading the rand
Trade forex is an online global market displayşng the latest value and exchange rate of the rand, hence you can invest whenever you think is appropriate. Always trade when the value is in favour of the rand and the value is increasing, therefore you will get more for your money and earn profit. Remember, however that trading currency is a risky business and always be prepared to loose money. There are online guides such as this one to give you advice. The significance of the South African economy
South Africa has a sophisticated financial structure with a large and active stock exchange and it ranks as 17th in the world in terms of total market capitalisation, it is therefore a safe bet. The South African Government has taken steps to gradually reduce remaining foreign exchange controls, which apply only to South African residents. Always conduct your research first as this is a big responsibility.