South African Rand (ZAR) and Sterling Pound (GBP)
With South Africa hosting the 2010 World Cup, it is no doubt in the travel plan of most tourist in football obsessed United Kingdom (which includes England, Scotland and Ireland). In fact, South Africa is already experiencing a boom in tourists from the United Kingdom now, one year before the World Cup even starts!
Besides the World Cup, there is another factor which may account for the rise in tourist numbers – The favourable exchange rate. The South African Rand is now trading at about 12 Rand to 1 Sterling Pound. This exchange rate is currently more favourable towards the Sterling Pounds compared to other major currencies like the Euro and US Dollar.
Some worries that the South African Rand will move to a downtrend against major global currencies (which include the Sterling Pound) once the World Cup concludes in 2010. This forecast is not unfounded. South Africa is still one the fastest developing countries of the world (due to the possession of large pool of natural resources like Gold, Platinum and Diamond). However, the growth of the nation had been on a weaker side, with a frail political system. High poverty as well as unemployment still prevail dominantly over the economy of South Africa.
With poor economic fundamentals, there is a serious concern that the end of the World Cup in 2010 will be the start of the Rand depreciation run.
