Have you heard about USD to ZAR? It is quite a new concept that many people are not aware off. USD to ZAR is a very useful concept that can provide you all the data that you need at a glance for any particular time. Just by using the key term “USD” you can get all the information on anything ranging from stocks to commodities to currencies.
The United States Dollar Index (USD) and the South African Reserve Currency (SAR) move in tandem. The Dollar Index (DXY, DXY, XLD) are compared against the South African Rand (ZA), which is also among the most commonly quoted financial statistics in international markets. Both the currency pairs move in opposite directions. So, if we look at it closely, why does the US Dollar Index move in a particular direction and does the South African Rand move in a particular direction? If we can get a clear answer to these questions then we will have a better understanding of how the market functions.
Let us first look at the relationship between the US Dollar Index and the South African rand. We will look into the reasons why the USD moves in this direction and the reasons why it may decide to reverse its trend and move in another direction. You should know that this particular trade off has been going on for quite some time now. Ever since the Bretton Woods system collapsed, there was a great shift towards the dollar and this led to the development of the USD/South Africa. The current trend is something that happens due to a combination of several factors and none of them are solely responsible for this move.
To understand exactly what is happening, it is important to understand what causes the trading off in the R band between the US Dollar and the SA currency. These are known as market economies and they basically mean that there are different interest rates that are being paid onto loans. If you take note of this and apply some basic economics then you will realize that it will not be possible for banks to earn enough interest from these loans to pay the loans and therefore they will have to get out of the market.
However this does not mean that you should stop doing your normal business and cut your losses. Instead banks need to get out of the market since it will not be possible for them to earn any interest by lending money in the future. You can see that this is a major problem for South Africa. However, when looking at the reasons why the US Dollar Index is moving, you will see that this is only one reason and that is only one aspect of this trade off.
To sum up, the current economic model of South Africa is not good for the people of this country. The problem lies with the fact that they are trying to run a model that is outdated and not based on sound principles. In order to bring the economy into focus and for the people to understand the situation, the government has to do something very radical. This can only be done if the powers that be allow the economy to be free enterprise and begin to regulate it accordingly. In other words the government must get out of the currency markets and only then will you see real change.
One way that this can be achieved is through creating a more democratic state so that power can be shared. Another option would be to have free trade within the country. This means that the banks can go directly into the communities and help them get their debt problems sorted out. This is the kind of thing that would happen if the powers that be allowed to remain in the market and make deals with the community to help them get out of their problems. If that happens the USD to ZAR will go up and the currency will soon be able to reflect this good trend.
This is the perfect time for the USD to go back to the gold standard and even though the powers that be may try to prevent this from happening it is something that is just impossible. If the powers that be continue on their present course then you can expect the USD to move towards a more gold standard type of trading. The market will need to consolidate and get back to what it was before we had the market crash and it is a sign that the USD is heading back to the gold standard if this happens. This is a very big signal that it is time for the USD to return to its gold standard trading roots. People have been asking the question is the usd to zar currency worth it? I can honestly answer that with a resounding yes, and I hope that you take advantage of this fact when looking at trading options.