Quick Foreign Currency Investing Advice Needed - South Africa

[blacktim]

Okay here is the scenario:

The South African exchange rate favors the American dollar strongly like around 7 to 1.

I was thinking about opening up a bank account in South Africa in preparation for the World Cup in South Africa in 2010. It will be the first time the world cup would ever in the continent of Africa.

From this event I'm expecting the rate to drop from 7 to 1 to possibly 4 to 1 or even better. If that is the case, obviously from simple math, my money will multiply.

So my plan is to scrape up like $500 bucks and simply dump some money in now..., and wait until June 2010, then go close the account.

Is that illegal?

Any other pros and cons advice you can give me?

 

[inthed2001]

Sorry Homey....have you really thought about this. Been in and out of SA for years....the exchange rate isn't going to go to 4. Do a bit of basic research and you'll see that it hasn't been below 6 in the last 5+ years. Its about as strong as its gonna get right now and is likely to go the other way.

As far as your World Cup aspirations....your too late. The country and everyone associated with SA in any meaningful way has been in preparation for years since its been announced. The great majority of investments are already priced in.

 

[kjxxxx]

Nothing you said sound illegal. You have to find out from the bank the requirements for opening the account. People open accounts in foreign institutions all the time. The only thing the government can charge you about a foreign account is if the funds used to open the account were ill gotten or if you have undeclared income from the accounts. You little $500 is not even worth pissing on to the government.

The South African Rand moves more with the price of natural resources (mainly minerals) than anything else.

The dollar goes up for all kinds of crap. These days it goes up because it is the most liquid currency and the big money people can move money in and out US Treasuries market easier than any other currencies. When there is problems in any other countries and people get nervous they move the money to US treasuries which require them to exchange out of what ever currency they are in and buy US to buy treasuries. This drive up the price of US dollar. So the other day when they percieve a problem in Greece which is one of the EURO countries then move money out of EURO to dollar. Also since they weren't certain of how it would affect other countries they move it out of non EURO counties too just to be safe. So if the percieve that the EURO still in crash mode then since South Africa is one of EU trading partner then it could be percieved that it could be affected.

Your plan to put money in SA bank is a safer plan that putting it in forex market though.

Who knows your plan could work. It could go to $4. If people perceive that there will be no crisis anywhere when the World Cup is going on then the dollar will fall. Last World Cup even the suicide bombs and terrorist attacks in the Middle East took a break.

Okay here is the scenario:

The South African exchange rate favors the American dollar strongly like around 7 to 1.

I was thinking about opening up a bank account in South Africa in preparation for the World Cup in South Africa in 2010. It will be the first time the world cup would ever in the continent of Africa.

From this event I'm expecting the rate to drop from 7 to 1 to possibly 4 to 1 or even better. If that is the case, obviously from simple math, my money will multiply.

So my plan is to scrape up like $500 bucks and simply dump some money in now..., and wait until June 2010, then go close the account.

Is that illegal?

Any other pros and cons advice you can give me?