DMD   EDU-HOME

WELCOME TO THIS PAGE INTENDED FOR STUDENTS AT THE UNIVERSITY OF THE WESTERN CAPE REGISTERED IN 2010  FOR THE MODULE:

QSF  132

T1 W2 L2

• WHAT WAS the RAND/US DOLLAR EXCHANGE RATE ON MON 19 JULY 2010? (R7.54/US \$ ?)
• WHAT WAS THE *SA REPO-RATE on MON 19 JULY 2010? (6.5%)
• WHY IS IT IMPOSSIBLE TO CLAIM THAT BECAUSE YOU “FORGOT TO PUT IN THE COMMA (POINT)” INTO AN AMOUNT ON A CHEQUE OF R1000, A 100 TIMES LARGER AMOUNT (R100 000) WAS PAID OUT IN STEAD (CF. “SATV SOAPIE ‘GENERATIONS, 13 JULY 2010)

*The rate at which the SA Reserve Bank lends money to banks.

FROM DSTV HOME CHANNEL : SUNDAY 18 JULY 2010

60% of the total property value in South Africa is bonded with banks.

• Why is the average bond on South African property more than 60% of the bonded property value.

ANSWER: Some of the SA properties have small or no bonds on it. In other words, some properties have been bought for cash.

1. CR, p.  36

1. CR, p.  44

3.   PROBLEM FORMULATING SKILLS : A 3

The following table  was taken from: downloaded 19 July 2010 at 14h30.

Current Market Rates

 Money Market Rates Indicator 2010-07-09 Fri 2010-07-12 Mon 2010-07-13 Tue 2010-07-14 Wed 2010-07-15 Thu 2010-07-16 Fri 2010-07-19 Mon Repo rate 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Marginal lending rate 11.50 11.50 11.50 11.50 11.50 11.50 SABOR(5) 6.26 6.26 6.26 6.25 6.27 6.26 Overnight FX rate(5) 6.53 6.55 6.52 6.48 6.62 6.60 Bankers' acceptance - 3 months 6.48 6.46 6.45 6.45 6.45 6.44 Treasury bills - 91 day (tender rates) 6.46 6.46 6.46 6.46 6.46 6.45 Treasury bills - 182 day (tender rates) 6.42 6.42 6.42 6.42 6.42 6.35 Treasury bills - 273 day (tender rates) 6.47 6.47 6.47 6.47 6.47 6.39 NCD's - 3 months (closing rates)(4) 6.59 6.55 6.55 6.55 6.55 6.55 NCD's - 6 months (closing rates)(4) 6.76 6.76 6.76 6.73 6.75 6.70 NCD's - 12 months (closing rates)(4) 7.13 7.13 7.11 7.10 7.13 7.07 Jibar - 3 months 6.59 6.58 6.57 6.57 6.57 6.55 Prime overdraft rate (predominant rate) 10.00 10.00 10.00 10.00 10.00 10.00 10.00

 Capital Market Rates Indicator 2010-07-09 Fri 2010-07-12 Mon 2010-07-13 Tue 2010-07-14 Wed 2010-07-15 Thu 2010-07-16 Fri 2010-07-19 Mon 13,5% 2015 (R157) (closing yieds) 7.73 7.69 7.65 7.71 7.76 7.73 10,5% 2026 (R186) (closing yields) 8.80 8.77 8.79 8.86 8.92 8.89 3-5 years (daily average bond yields)(1) 7.62 7.57 7.55 7.55 7.61 7.67 5-10 years (daily average bond yields)(1) 7.76 7.71 7.68 7.67 7.72 7.75 10 years and longer (daily average bond yields)(1) 8.83 8.79 8.79 8.80 8.87 8.91

 Exchange rates Indicator 2010-07-09 Fri 2010-07-12 Mon 2010-07-13 Tue 2010-07-14 Wed 2010-07-15 Thu 2010-07-16 Fri 2010-07-19 Mon Nominal effective exchange rate(2) 74.32 74.29 74.37 74.56 74.27 73.61 73.07 Rand per US Dollar(3) R7.5659 R7.6119 R7.6114 R7.5297 R7.5406 R7.5620 R7.6198 Rand per British Pound(3) R11.4911 R11.4023 R11.4212 R11.4983 R11.5496 R11.6511 R11.6712 Rand per Euro(3) R9.6072 R9.5777 R9.5416 R9.5880 R9.6324 R9.7761 R9.8806 Rand per Japanese Yen(3) R0.0855 R0.0856 R0.0860 R0.0847 R0.0857 R0.0868 R0.0877

 London gold price per fine ounce (average of the day's am and pm price fixings) Indicator 2010-07-09 Fri 2010-07-12 Mon 2010-07-13 Tue 2010-07-14 Wed 2010-07-15 Thu 2010-07-16 Fri 2010-07-19 Mon US Dollar \$1202.50 \$1204.63 \$1211.25 \$1209.63 \$1209.88 \$1197.00 \$0.00 Rand R9089.19 R9139.80 R9127.73 R9136.14 R9131.13 R9040.79 R0.00

JSE Limited (JSE) website http://www.jse.co.za

Footnotes
1) Source: JSE Limited
2) The weighted average exchange rate of the rand is based on trade between South Africa
and its fifteen most important trading partners. Index: 2000=100. (See Article in December 2008 Quarterly Bulletin for various weights)
3) Weighted average of the banks' daily rates at approximately
10:30am.
4) As from 1 April 2004, the rate reflected related to negotiable certificates of deposit (NCD's) (instead of promissory notes)
5) Replacing the Saonia+, Saonia, Forex Forwards and carry rate from 27 March 2007.

©  DESMOND DESAI, DMD EDU-HOME, 2010

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