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Exchange Rate affect on solar.

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Hi Leaves. 

 

I am afraid it is going to have an effect. 

 

  1. Exchange rate has obvious knock on effect.
  2. Those that didn't take out Foreign Exchange Forward Risk Insurance will be bleeding and may not import again and so you have a smaller pool of importers. In spite of the large number of importers the solar supply industry is not always that competitive (perhaps I am naive as to the costs of importing goods) and there will be fewer folk with the stomach for importing on the back of a fluctuating currency. There are losses to be made on both a strengthening currency and a weakening currency.

most of my suppliers will only quote for the day, if you don't pay same day.......different price, very sad times ahead me thinks. It unfortunately will get worse before improving. Serious damage has been done to the credibility of this country. 

I wish I had had the capital to complete my solar projects. I suppose one consolation is that one of the products of my two major enterprises is exported and the other's price is based on import parity both of which are set to rise. The hassle is all South African consumers are 15-20% poorer than they were on Wednesday afternoon   

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