GT Letsoko

Grew up in Sowe2, Dk Zn 4 corner dladla. Studied I.T @ VUT. Big fan of Orlando Pirates |soccer |houze muzik |pc games!

[GT Letsoko @GT_Letsoko]

@SizweDhlomo I also use kiwi. I just tell them I’ll polish them at home.

[GT Letsoko @GT_Letsoko]

@SkeemSaam3 Kganyago

[GT Letsoko @GT_Letsoko]

@political6778 @duma_boko Cream yona ga e sale!

[GT Letsoko @GT_Letsoko]

@PatrioticNews24 Ba re oe gapa Joey.

[GT Letsoko @GT_Letsoko]

@YawehorNoway Nah, it’s your car!

[GT Letsoko @GT_Letsoko]

@KickFutbol_ Sarcasm 😊

[GT Letsoko @GT_Letsoko]

@Usisipho_N True!

[GT Letsoko @GT_Letsoko]

@XoliswaZondo Their Commercial and Marketing team are must work hard to attract more brands.

[GT Letsoko @GT_Letsoko]

@salmanea @iDiskiTimes Suspension. He has accumulated 3 yellow cards.

[Annelise Bapong @AnneliseBapong]

@Boity_tshivhase This is the same idea as Skubu’s owners mos, why is Shoprite copying this idea? 😳 this is unacceptable.

[GT Letsoko @GT_Letsoko]

@Makonco_M That’s great advice. Our strikers tend to rush when they are inside the box.

[GT Letsoko @GT_Letsoko]

@eNCA Bull crap

[GT Letsoko @GT_Letsoko]

@AfricaFactsZone Also, very expensive!

[GT Letsoko @GT_Letsoko]

@Sneza_Mkhize Yep. He sounds so dumb.

[GT Letsoko @GT_Letsoko]

@VideosVuvu 🤣

[GT Letsoko @GT_Letsoko]

@HardInterest @robertmarawa Young player award is for players who are 21 years or younger. Rele is 21 years and has been playing since the age of 18, & every season he is better than the previous one.

[GT Letsoko @GT_Letsoko]

@ThatG4m Raul

[GT Letsoko @GT_Letsoko]

@iDiskiTimes 10/10

[Buddy Wells @BuddyWells1]

What tends to happen with these forex loans to @Treasury_RSA , is that Treasury sells the forex to the @SAReserveBank, which adds it to its forex reserves, and credits treasury’s account with rand (money creation).
When treasury spends the rand, it adds to private sector bank reserves and bank deposits, increasing money supply.

Because the SARB pays banks interest at the repo rate on excess bank reserves, this spending by govt, which increases excess bank reserves, results in increased interest paid by SARB to private banks (a massive unearned windfall for banks) unless treasury then sells bonds (swapping bank reserves for govt bonds), to mop up the excess reserves, in which case govt pays an even higher interest rate to the banks on the bonds.
So the state ends up paying double interest (interest on the original forex loan, and secondary interest either on bank reserves [created by govt spending new rand locally] or on govt bonds [sold to mop up reserves]).
Any extra profit that the banks make from this unearned windfall (interest on excess reserves or bonds), that banks pay to their shareholders in dividends, adds to SAs broad money supply (bank deposits), which adds an inflation risk on top of the above costs.

Seeing as the forex can only be used on funding imports, SAn investment abroad or forex debt repayments, one has to wonder why treasury is committing “the original sin” of borrowing in a currency it doesn’t issue, only to boost SAs already record forex reserves?
And if the purpose of the forex loan is to finance local spending in rand, why not rather just get a loan direct from the SARB at repo (the rate that SARB will pay banks on the reserves created by govt spending the loan), and skip taking out the forex loan and paying the interest on that too?

[Sammichainz @Sammichainz]

@KMbappe @EASPORTSFC Who's the young G.O.A.T now