We separate our money in various currencies to beat inflation and depreciation of ZAR.
You can't have all ur local bank account in Rand and also open foreign account in Rand thats been dumb. Because one day you will become rich as far as u in this trading thing and if rand crash u finished.
The reason we with huge account don't withdraw a lot from USD , GBP , EUR trading account and bring it back to SA is because it give us option to hedge our ZAR investment againt major currrncy in time of depreciation.
For example when rand hit 14,50 few months back , I had R11 million in rand cash when USDZAR was at R13 so what happened when USDZAR stumbled up to 14,50 ? That money lost R1 million in value , if I was to change It to dollar by that day I would get dollar valued at R10 million instead of R11 million it was.
So how did it not affect me? Because I have over a million dollar trading account that Is in pounds and dollar, when rand depreciated against dollar my dollar in trading account appreciated. So if i was to exchange my $1 million USD in trading account to ZAR at that R14,50 rate, it will make me extra R1 million opposed to what I was to get when USDZAR was at R13.
So i automatically dribbled the inflation and depreciation of rand against majors.
Things your mentor didn't know not to talk of teaching you.
