How to benefit from currency depreciation in your investment portfolio

For most South Africans, the uncertainty of today’s world and the weakening rand infuses everyday life with anxiety and worry. Often, we reflect on the good old days (sometimes as recently as four years ago), when the rand was R13 to the US dollar. Suren Govender, Business Development Manager at Glacier International, points out that the weak rand is unfortunate, but we have an opportunity to change an unfortunate situation to a positive one for investors.

Simple economics
In order for any economy to prosper, a country must efficiently maximise its opportunities presented by its land size and citizens, to generate goods and services that create jobs and livelihoods, take care of the nation and contribute to the world. Entrepreneurs understand this need and create businesses. And in order for a business to expand, it has to raise capital. Listed companies raise capital from investors and the public, and thereby generate larger volumes of sales revenue from a national distribution network.

Consumers participate and are critical to this process. Importantly, the profits and goodwill of these companies impact on discretionary investments, retirement funds, retirement annuities, unit trusts and share portfolioA portfolio of shares of companies listed on the stock exchange with full market exposures. One of the key variables that contribute to the growth of businesses and the economy is growing market share around the globe.

October 17 2023 By Suren Govender - Glacier International