Account currency devaluation - what can you do about it?

Beginner Questions
1

Hi guys

My account currency is US dollars and my local currency is South African rand. Long term projections for a strengthening of the rand versus the dollar are looking good, and as a result this erodes my account balance heavily when I convert it back from dollars to rand. What can one do about this, if anything?

2

PM… I know some brokers allow you to hold your account in an alternative base currency.

I know oanda offers about 4 or 5 base currencies…including the singapore dollar(which is fundamentally one currency with some great future prospects),.

Anyway, maybe if your broker doesn’t offer this…check around and find one that does…cuz I KNOW it is available if you have a broker that offers it :wink:

Jay

3

You could put on a long rand position in your account equal to the size of your balance if that’s available to you.

4

Thanks guys - good ideas :slight_smile:

5

You could hedge your account with any other currency or a mix. Or even hedge with commodities. Hedging has the advantage it doesn’t need to be done in your account. It can be done even with real goods.