Eliminate exchange rate risk

If you retain investments and / or receive income in a currency which is different to that of the country where you live there will always be an inherent risk from a foreign exchange perspective. This graphic reflects the movement in the exchange rate between the South African Rand and the Australian dollar since November 2002 and illustrates how this can impact upon the value of your Rand based investments and / or income. In this case the value in Australian dollar terms has fallen by 40%.

The reverse would of course apply if there were to be an appreciation in the value of the Rand against your local currency.

Whilst past performance is no guide to the future direction of a currency the general trend in this respect is of concern to those who live outside South Africa and retain Rand based assets. With many forecasters predicting further weakening of the currency going forward timing in this respect does become a very important issue.

For your further information we have included a similar graphic detailing the movement of other major currencies over the same period.

It is worth noting here that if you engage the services of cashkows.com to extract and repatriate your funds our process is designed to provide you with full control in terms of timing when it comes to the conversion of policy proceeds from South African Rand to your local currency. We can also secure superior exchange rates with certain banks to add further value.

ZAR HISTORICAL PERFORMANCE: NOV 2002 – NOV 2011

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