Thriving Amid Rand Volatility: A Smarter Currency Strategy for South African Businesses
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By Stian Van Zyl, Forex Risk Manager at Kuda FX
For many South African businesses, particularly those involved in international trade, the exchange rate has become an unpredictable force in day-to-day operations. From managing supplier payments to securing export profits, the strength of the rand often determines more than just your pricing - it can define your margins and competitive edge.
Navigating this reality requires more than a reactionary mindset. It calls for strategy, discipline, and a partner who understands how currency volatility plays out in the real world.
Stability Comes from Strategy, Not Speculation
Volatility in the rand is nothing new, but it does seem to be intensifying. And while it’s tempting to view this as purely a risk, the truth is that volatility can be managed - and even used to your advantage - if you know how.
At Kuda FX, we work with businesses that want to shift from uncertainty to control. The first step in that journey is always the same: understanding your exposure.
Before locking in rates or exploring hedging instruments, I encourage clients to first assess:
- The volume and timing of their foreign currency flows
- Their margin pressure points
- The threshold exchange rate below which business is no longer profitable
- Their internal appetite for risk and flexibility
This forms the basis for a tailored, structured strategy - not a one-size-fits-all fix.
A Risk Policy Brings Consistency
Another overlooked aspect is formalising an internal FX risk policy. Rather than reacting to news headlines or currency movements, a well-crafted policy defines how and when action is taken.
It outlines thresholds, identifies trigger events (like large imports or seasonal exports), and ensures alignment across finance, procurement, and operations teams.
A clear policy turns FX management into a repeatable business function - just like budgeting or payroll.
Our Role at Kuda FX
At Kuda FX, our job is to simplify what can often feel complex. We combine strategy and execution into a single process:
- We help you identify exposures and vulnerabilities
- We recommend hedging solutions suited to your business
- We assist with pricing, approvals, compliance, and reporting
- And we provide real-time updates and ongoing advice
We also offer clients access to industry-grade treasury systems, bank integrations, and personalised relationship management. Whether you are a mid-size importer or an established exporter, you deserve the same tools and insights as a corporate treasury desk.
In Closing: Strategy Is the Competitive Advantage
Exchange-rate volatility isn’t going away - but neither is your business. The companies that succeed in this climate will be those who view currency management not as a reactive task, but as a strategic function.
With the right guidance, businesses can go from uncertainty to structure, from risk to opportunity. And that’s what we aim to deliver at Kuda FX.
If your business is exposed to currency risk, let’s talk. A conversation could be the start of a strategy that secures your financial future - whatever the market does next.
Stian van Zyl