The repo rate influences the South African economy. Read more to find out how the repo rate affects international money transfers
The Effect of Repo Rates on International Money Transfers
Repo rates influence international money transfers and are determined by the South African Reserve Bank (SARB).
What are repo rates? This is the rate at which the SARB lends money to South African banks to avoid any shortfall. The SARB adjusts and sets the limit to help keep inflation below the target limit.
The current repo rate on international money transfers (as of 18 November 2021) is 3.75% per annum.
This means that interest on all loans, mortgages and vehicle repayments will fluctuate with the repo rate as provided by the SARB. The repayment of debt is not the only thing affected in this instance, the interest on your savings will also fluctuate. Should the repo rate decrease, monthly debt repayments will drop to a cheaper rate, the interest gained on savings accounts will also be less. Should the repo rate increase, monthly debt repayments will be more expensive, and the interest gained on saving accounts increases.
How does this affect international money transfers though? The rates paid on the process of transferring your money will depend highly on the repo rate. This will affect the interest you could gain or lose on a sum of money as well as the rate brokers can offer. The same applies to transferring money as it does to debt. Should the repo rate decrease, the rate on your money transfer will be less. Should the repo rate increase, the rate at which you pay for the transfer will increase.
At TransferMe, our brokers pay very close attention to the inflation and repo rates ensuring our clients receive excellent, competitive rates through a safe and secure channel to monitor and track your international money transfers. Our highly experienced team will assist you in registering for free and provide you with expert advice.
Contact TransferMe today and start your international money transfer journey: support@transferme.co.za