Don’t bring back your dollars

y Renee Eagar*

If you’ve been watching the strength of the rand lately, you might be wondering: Should I bring my offshore money back to South Africa?

It’s a fair question. But the answer in NO! The rand has been unusually strong, especially against the US dollar, strengthening by around 10% in 2025.

But don’t let that fool you. This doesn’t mean South Africa’s economy is suddenly booming, or that it’s time to shift your savings back home.

Here’s what’s important when looking at these numbers.

Why is the rand stronger right now?

Most of the rand’s recent strength is actually about weakness in the US dollar. The mighty dollar has taken a knock as uncertainty about interest rates and the impact of trade policy have shaken faith in the US currency.

This has made many global currencies, not just the rand, look stronger by comparison. So yes, the rand looks good on paper, but a big part of that is due to global trends, not local strength.

When we compare the rand to other major currencies like the euro or the British pound the picture is somewhat different. SA versus other currencies over the past year:

Don’t let short-term currency moves distract you

We know it can be tempting to want to act quickly when the rand strengthens. And it might feel like now’s the time to cash in some of your offshore investments or move money back.

The thing is, that kind of short-term thinking can hurt your long-term growth.

Strong currencies come and go. What really matters is where your money has the best chance to grow steadily. For many South African investors, that long-term opportunity still lies in global currencies.

Also, the most attractive investment opportunities are still offshore, not only in the US but other areas of the world are also showing prospects such as Europe, emerging markets etc.

Offshore still offers better options

As we’ve pointed out countless times, offshore investments make sense for South African investors because our market is so small: it makes up less than 1% of the world’s economy. That means 99% of growth is happening in countries with bigger, more stable economies.

So why not go straight to the offshore earnings – without being restricted where you can invest. A lot of the products we consume daily are based in USD terms; you need to grow in hard currency terms.

And let’s not forget that many of the world’s best companies – the ones building tomorrow’s technology, healthcare, infrastructure, and energy – are based overseas. That’s where long-term opportunity lies.

Just imagine how your portfolio would look without stakes in Nvidia, Microsoft or Tencent?

It remains important to have a globalised portfolio.

So, what should you do?

Here’s our advice, plain and simple:

• Don’t panic or rush to bring your money home. The dollar might stay weak for a while, or it might not. Trying to time the perfect moment almost never works.
• Stick to your long-term goals. You’re saving for retirement, not just trying to win this year. Offshore investments help protect and grow your wealth in strong currencies that hold their value over time.
• Use this time to your advantage. A stronger rand actually gives you an opportunity. You can buy more global assets for less. That’s a smart move if you’re looking to grow your savings overseas.

Remember, many South African companies you invest in already earn profits in other countries. The local stock market may be in rand, but much of the growth still comes from offshore.

By no means count the US out, they are resilient. They have low unemployment and rates, US GDP growth of 3% +, inflation at <3%.

The bottom line?

Don’t let the strong rand distract you from your long-term strategy. Although there have been some positives in SA lately 70% of the rand’s movements are based on external world based factors which we don’t have any control of.

Keep focused. Stay global. And make sure your savings are working for you – hold onto your long term goals, it is very important to stay the course.