Tag: cash management

With recent research showing that only 14% of South African consumers are ready to go completely cashless, retailers should be looking at ways to accommodate their customers’ preferred way to pay, while also reducing their operating costs.

With South Africans learning to live with the current cycle of stage 6 load shedding, many believe the ongoing power cuts to be the antagonist behind the weak Rand. However, according to treasury experts, load shedding is merely a small contributor to a far greater picture.  

The global economy is likely to recover as vaccines are administered. Pair this with low interest rates and the huge fiscal stimuli injected into the world’s largest economies, and you have a solid recipe for risk-on sentiment. Emerging markets assets, like those found in South Africa, bask under such circumstances.

Nearly eleven months after South Africa’s lockdown was first declared, there remains a great deal of uncertainty about the effect that the coronavirus pandemic will continue to have on our society and economy in 2021. Nevertheless, it is worth considering how one particularly hard-hit industry is expected to evolve in the context of the continued pandemic and difficult economic outlook.

Those fortunate enough to have some excess cash on hand are in a unique position within the global context as workers across the world continue to grapple with the economic fallout of COVID-19. While there may be the temptation to utilise excess cash flow on shorter-term expenses, recent events have emphasised the importance of positioning your finances for an uncertain future.

From Trump’s trade wars and Brexit woes to the looming threat of a credit rating downgrade in South Africa, rising waves of political and market volatility have left more and more investors wondering whether it wouldn’t be better to keep assets safely tucked away in cash.