Financial Report

E1 = R7.67253
$1 = R5.72791
R1 = W185.522

Commentary:

The Rand is our currency in South Africa. Rand is actually an Afrikaans word meaning ridge, and a ridge around Johannesburg, called the Witwatersrand (lit: White Water's Ridge) forms the backbone of South Africa's mineral wealth, especially gold.

To understand the Rand's movements, one has to remember that South Africa, like Korea, does plenty of exporting and it's open economy is vulnerable to economic volatility with their major trading partners. South Africa's major trading partner is the EU, so the currency tracks the Euro, but is also influenced, like most other currencies, by developments with the dollar.

Earlier this year the Rand was trading close to R7 (R6.65) to the dollar, and has since strengthened 13%.
Since I work in South Korea, my concern is not so much with the dollar, but with the local currency. I need to be aware of the Dollar because while the South African currency tracks the Euro, the South Korean Won tracks the Dollar. Even when a large amount of trade occurs with China, the dollar still becomes a factor since the Chinese currency, the Yuan, is pegged to the dollar.

Currently the currency situation is not as good as it was when I arrived in Korea 3 years ago. The value of our incomes, in terms of currency, has been reduced by 30-40%. Nevertheless, it is still quicker and easier to save a larger proportions of my salary than it would be in South Africa.