OUT TO LUNCH
On my return visits to the family in the UK in the early 1980’s I had already accepted that the Rand was, on balance, more likely to depreciate than appreciate. When I arrived in SA the commercial rand rate was R1.80 to the £ and the financial rand was at R4.50 to the £. Since I was emigrating I was allowed to bring the bulk of my not so vast wealth in through the financial rand which allowed me to buy shares in the company employing me.
My negativity towards the currency of the country of my adoption wasn’t based on a short term, carpet-bagger view of South Africa (whatever the bouffant haired one may claim). It was purely based on the reality that sanctions were looming, that PW Botha probably wouldn’t cross the Rubicon (he didn’t) and that things were bound to get tougher for SA which at the time was emerging from a gold price boom that had convinced many people the good times would never end.
Since I had decided to make South Africa my home the strength or weakness of the currency was of no great consequence to me other than when I had a few pounds sterling left at the end of an overseas trip. Did I really want to bring it back though, convert it to rands and exchange it next year at a less attractive rate? As a financial market trader that would have been a really dumb decision. So what to do?
My father gave me a stern lecture on exchange controls and pointed out that I was not permitted to keep money offshore at the time. That could lead to all sorts of trouble with the South African Reserve Bank. In those days one was expected to exchange any foreign currency at your bank on your return.
My father had a solution. He pointed out to me that it was not a crime to order a bottle of wine while on an overseas trip and fail to drink it. Or indeed, 60 bottles of wine. And so it was that I became the part owner of a bonded stock of en primeur Ch Latour 1986, Ch Lafite 1986 and a decent supply of Churchill Port circa 1963.