It’s no surprise that the economic pressure facing Britain has taken its toll on the Pound. Ernst Janse van Rensburg, manager of 1st Contact’s expert Forex division predicted some months ago that the Pound would indeed weaken and the Rand would be set to strengthen, which certainly is now the case.
According to Janse van Rensburg “inflation differentials show that there will be a strengthening in the Pound in the long run”. Janse van Rensburg goes on to explain that this does not necessarily spell out short term movements for those residing and working in the UK. His advice to professionals is that saving their pounds in the hope that the currency might strengthen may not be the best course of action, as it may take a significant amount of time for the Pound to regain its strength.
He believes the rand will retain relative strength in the current climate. “There is also a whole lot of capital flowing into South Africa through sport investment, so I think the future is quite positive regarding the Rand as a currency”, explains Janse van Rensburg.
1st Contact Forex urges individuals to take control over their own financial affairs during these trying times by educating themselves on basic financial terms and exchange rate implications. As much as the financial world can seem a bit daunting to many, 1st Contact are of the opinion that it is more optimal for individuals to be empowered to make their own financial decisions, as opposed to becoming dependant on seeking expert financial advice.
“1st Contact Forex seeks to provide consumers with all the knowledge they will need on exchange rate fluctuations in order to make wise and informative decisions” says Janse van Rensburg.
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