Johannesburg - Those planning a mid-year international holiday don’t have to become victims of rand volatility.
Craig MacFarlane, the head of Bidvest Bank retail operations, said feedback from the bank’s branches was that customers were concerned about the effects of a weakening currency on their plans for overseas holidays.
But, the blows of currency movement could be cushioned.
Reserve Bank rules allowed travellers to purchase their foreign exchange up to 60 days before departure, MacFarlane pointed out.
This creates rand-averaging opportunities at times of currency weakness. Early preventive action could deliver significant savings.
In mid-March, the rand traded at R13.88 to the British pound. By mid-May, the rand was at R14.67 to the pound. The more favourable rate could have been secured by using the 60-day window.
MacFarlane explained: “No one can predict currency movements, but this does not mean you must leave everything to chance.
“If you take a decidedly negative view of the rand’s prospects over the next two months, you can buy all of your travel money 60 days in advance by producing your passport and ticket.
“If you take a less bleak view, you can buy some of your currency two months in advance, buy some more one month ahead of time and pick up the remainder in the last couple of days before departure. This way you flatten out some of the gyrations.” – Saturday Star