| Grade 12 Catch up programme. |
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CLICK HERE TO DOWNLOAD THE STUDY GUIDES
Date: 30th August 2010 - Monday
Radio station |
Time channel |
Subject |
Guest and mode of contact |
Thobela fm |
17:15 – 18:00 |
History – Civil Society Protest – RSA |
Mr. Ngoveni R – 076 317 2504 – Telephonic |
Munghana Lonene fm |
17:15 – 18:00 |
Geography – Tropical Cyclones |
Mr. Makhuvha NS – 072 171 9225 – Thohoyandou Live |
Phalaphala fm |
17:15 – 18:00 |
English – Summary writing |
Mr. Radzilani ET – 083 256 1666 - Telephonic |
Date: 31st August 2010 - Tuesday
Radio station |
Time channel |
Subject |
Guest and mode of contact |
Thobela fm |
17:15 – 18:00 |
Life Sciences – Animal reproduction |
Mr. Lidzhade NC – 015 963 2333/ 084 589 3293 - Telephonic |
Munghana Lonene fm |
17:15 – 18:00 |
History – Civil Society Protest – RSA |
Mr. Ngoveni R – 076 317 2504 – Telephonic |
Phalaphala fm |
17:15 – 18:00 |
Geography – Tropical Cyclones |
Mr. Makhuvha NS – 072 171 9225 – Thohoyandou Live |
Date: 01st September 2010 - Wednesday
Radio station |
Time channel |
Subject |
Guest and mode of contact |
Thobela fm |
17:15 – 18:00 |
Maths literacy – Volume |
Ms. Malima ML – 083 967 3479 – Thohoyandou Live |
Munghana Lonene fm |
17:15 – 18:00 |
Life Sciences – Animal reproduction |
Mr. Lidzhade NC – 015 963 2333/ 084 589 3293 |
Phalaphala fm |
17:15 – 18:00 |
History – Civil Society Protest – RSA |
Mr. Ngoveni R – 076 317 2504 – Telephonic |
Date: 02nd September 2010 - Thursday
Radio station |
Time channel |
Subject |
Guest and mode of contact |
Thobela fm |
17:15 – 18:00 |
Mathematics – Financial Maths |
Mr. Marubini MS – 082 707 2199 - Telephonic |
Munghana Lonene fm |
17:15 – 18:00 |
Maths literacy – Volume |
Ms. Malima ML – 083 967 3479 – Thohoyandou Live |
Phalaphala fm |
17:15 – 18:00 |
Life Sciences – Animal reproduction |
Mr. Lidzhade NC – 015 963 2333/ 084 589 3293 |
Date: 03rd September 2010 - Friday
Radio station |
Time channel |
Subject |
Guest and mode of contact |
Thobela fm |
17:15 – 18:00 |
Physical Sciences – Batteries and practical investigations |
Mr. Chikande J – 071 952 5199 – Polokwane - Live |
Munghana Lonene fm |
17:15 – 18:00 |
Mathematics – Financial Maths |
Mr. Marubini MS – 082 707 2199 - Telephonic |
Phalaphala fm |
17:15 – 18:00 |
Maths literacy – Volume |
Ms. Malima ML – 083 967 3479 – Thohoyandou Live |
Date: 04th September 2010 - Saturday
Radio station |
Time channel |
Subject |
Guest and mode of contact |
Thobela fm |
07:00 – 08:00 |
Accounting – Production costs statements and Trading accounting |
Mr. Molepo MJ – 073 149 6309 – Polokwane live |
Munghana Lonene fm |
08:15 – 09:00 |
Physical Sciences – Batteries and practical investigations |
Mr. Chikande J – 071 952 5199 – Polokwane - Live |
Phalaphala fm |
08:15 – 09:00 |
Mathematics – Financial Maths |
Mr. Marubini MS – 082 707 2199 - Telephonic |
Date: 05th September 2010 - Sunday
Radio station |
Time channel |
Subject |
Guest and mode of contact |
Thobela fm |
11:05 – 11:45 |
Agricultural Sciences – Diseases and pests |
Mr. Mphaphuli NT - 083 621 2667 - Telephonic |
Munghana Lonene fm |
21:15 – 22:00 |
Accounting – Production costs statements and Trading accounting |
Mr. Molepo MJ – 073 149 6309 – Telephonic |
Phalaphala fm |
08:15 – 09:00 |
Physical Sciences – Batteries and practical investigations |
Mr. Chikande J – 071 952 5199 – Polokwane - Live |
Subject: Economics
Topic: Foreign exchange market
Guest: Moyaga BM – Dendron High
Live from Thobela Studios
Contact: 071 574 6110
Note to Producer and Presenter:
Latest exchange rate will come handy for the topic.
This project will be conducted in English, this is because the educator might not be in position to speak the language of the Station unless other wise. The background information is for the presenter to be in par with the topic of the day, the educator will be presenting the whole topic.
Background information
What is the Foreign Exchange Market?
The Foreign Exchange Market is the financial market in which currencies are bought and sold that is a transaction is entered into where a given amount of currency is exchanged for another amount of currency. The need for the
Foreign Exchange Market (commonly referred to as the Forex Market) developed to facilitate International trade where currencies were required to be settled from the country of both the importer and the exporter. It therefore plays an extremely important role in facilitating cross-border trade, financial transactions and investment. More recently, it allows borrowers to have access to the International capital markets in order to meet their financing needs in the currency which is most conducive to their requirements.
Characteristics of the Foreign Exchange Market
The Forex Market does not exist physically. It is a framework in which participants are connected by computers, telephones and telex (SWIFT) and operates in most financial centres globally. Because the Forex Market is so highly integrated globally, it can operate 24 hours a day – when one major market is closed, another major market is open to facilitate trade occurring 24 hours a day moving from one major market to another. Most exchanges of currency are made through bank a deposit that is transferred electronically from one account to another.
The volume of foreign exchange transactions worldwide is assumed to be approximately USD5 trillion per day in October 2006 and Standard Bank is the recognised leader in the domestic foreign exchange market, handling more than 30% of South Africa’s foreign exchange volume. The Forex Market is an over-the-counter market that is trading in financial instruments that are not listed or available on an officially recognised exchange (such as the JSE – Johannesburg Stock Exchange), but traded in direct negotiation between buyers and sellers. Trading takes place telephonically or electronically.
Why do we make use of the Foreign Exchange Market?
Trading in a domestic market is substantially different from doing business in an offshore market. In the complex world of international trade, merchants face a number of risks that need to be managed in order to ensure the success of their cross–border transactions. In order to protect themselves, these corporations apply hedging techniques using various foreign exchange instruments and products in order to negate the impacts of exchange rate fluctuations. Successful companies employ effective risk management techniques when making business decisions, and evaluate commercial risk in an explicit and logical manner in order to offset financial loss occasioned by the volatility in exchange rates (currency risk).
Exchange rates
An exchange rate refers to the ratio at which the unit of currency of one country may be, or is, exchanged for the unit of currency of another country. It is the price of one country’s currency expressed in terms of another country’s currency. Each currency has a code by which it is identified. Each code consists of three letters – the first two letters identify the country and the 3rd letter is the first letter of the name of the currency. For example South Africa = ZA, rand = R thus the currency = ZAR.
An exchange rate is a two-way interpretation that is the price of currency A (for example USD) in terms of currency B (for example rand / ZAR). For example, an exchange rate of USD1 = ZAR7.70 can be interpreted that it will cost you ZAR7.70 to buy 1 USD, or alternatively, for 1 USD you will receive ZAR7.70.
Thus, a foreign exchange transaction involves two currencies. Quotes using a country’s home currency as the unit currency are known as direct price quotation and are used in most other countries. Direct quotation: Home currency/Foreign Currency for example ZAR/USD, Indirect Quotation: Foreign Currency/Home Currency for example USD/ZAR.
Note if a unit currency is strengthening / appreciating (that is if the currency is becoming more valuable) then the exchange rate number decreases. Conversely, if the price currency is strengthening, the exchange rate number decreases and the unit currency is depreciating.
What are the factors Influencing Exchange Rates?
Because foreign exchange transactions involve the exchange of one currency for another, the exchange rate itself is determined by the conditions surrounding demand and supply for the relevant currencies. It will become less valuable whenever demand is less than available supply – this does not mean people no longer want money, it just means they prefer holding their wealth in another form, possibly another currency. The following factors influence exchange rate fluctuations:
Balance of Payments (BOP) is the systematic recording of all economic transactions, that is, goods and services including insurance, shipping and earnings from overseas investment. It is drawn up and published in a similar form to a company’s income and expenditure statements. With a BOP surplus (that is more goods and services being exported than imported), a country’s currency will tend to strengthen and with a BOP deficit (that is more goods and services being imported than exported), the currency will tend to weaken. This is because in the case of the BOP deficit, there is an outflow of currency to pay for the imports, foreign currency has to be bought in exchange for the local currency to transact payment, therefore, there will be more sellers of the domestic currency than buyers and the exchange rate will tend to drop.
Interest Rates - Investors will generally move their money where they can earn a higher return (that is the interest rate). The higher a country’s interest rates, the greater the demand for that currency.
Political developments – In choosing what type of asset to hold, people are also concerned whether the asset will retain its value in the future. Most people will not be interested in a currency if they think it will devalue. A currency will tend to lose value, relative to other currencies, if the country’s level of inflation is relatively higher, if the country’s level of output is expected to decline, or if a country is troubled by political uncertainty.
Government policy – exchange rates can be affected by Central Bank intervention, in line with government policy. Central Banks can increase or decrease (buy and sell) the supply of their currency in order to smooth out unfavorable or unrealistic fluctuations in currencies. They can also intervene in the domestic market to influence the
Exchange rate.
Speculation is the buying, holding and selling of currencies to profit from fluctuations in its price as opposed to buying it for use or for income. Speculative buying can cause. Particular currency fluctuations, as prices rise above their ‘true worth’ simply because the speculative purchasing is artificially increasing the demand. Speculative selling can.
Also cause prices to fall below ‘true value’ in a similar fashion.
Market sentiment. The foreign exchange market is not predictable, nor does it follow a logical pattern. Factors such as market sentiment consisting of individual and Industry views and perceptions, industry reports, analysis of economic data and events etc, all have a role in influencing exchange rates.
Who are the Foreign Exchange Market Participants?
Commercial Banks participate in the market by offering to buy and sell foreign exchange on behalf of their retail or wholesale customers as a part of their financial service.
They also trade in foreign exchange as an intermediary and market maker. (Market makers quote a buy and sell price on a currency or financial instrument hoping to make a profit on the spread that is the difference between the buying and the selling price). Other financial Institutions, such as Brokers (Institutional Investors, Insurance Companies, Pension, Mutual and Hedge Fund Managers) need to manage various portfolios on behalf of their clients, and thus participate in the foreign exchange market.
They rely on the rates quoted by the market makers to market participants and charge commission or a brokerage fee for services rendered. Corporations buy and sell foreign exchange generally to facilitate trade, or as a result of a trade done and also to hedge currency exposures that exist due to a particular trade conducted. These corporations generally consist of exporters and importers. Central Banks can sometimes intervene in the foreign exchange market in order to implement monetary policies.
Foreign Exchange Instruments
A number of foreign exchange instruments have been designed for effective hedging as well as enhancement of returns. The following instruments and products are most common to the Foreign Exchange Market to facilitate international trade and include: Spot transactions, Forward Transactions (FECs), Options (Derivatives of exchange rates), International money transfers, Guarantees, Commercial Customer Foreign Currency accounts, Documentary Credit and Collections, Offshore Finance and Specialised
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