How people in South Africa can beat Inflation

In South Africa the average interest rate of bank savings accounts are a modest 4.88%. The annual inflation rate is high on 5.9%. Thus by keeping your hard earned money in the bank, your money’s value is going down by 1% per year in real terms.

The South African Rand is devalued at 7.7% on average, per year, against the US $, this average is for the past 10 years!! If you thus invest in the US $ you are better off by 1.8% per year. This is thus a good option, but there are much better options!!

This is where stable COINS come in, and our favourite coin HBD*!! (I see there is big noise on some stable coins as well as some liquidity pools loosing value, with TerraUSD @ $0.168, but our star coin stayed stable!!)

With HBD giving a 20% APR, coupled to the 7.7% devaluation of the Rand against the Dollar, it means South Africans can earn 27.7% annually. (I am not even factoring in compounding of HBD). With the inflation rate at 5.9%, it means a real return of 21.8% per year!! This means (again without compounding), that you will double your investment in just less than 5 years!!

This is a South African example, but this can work in a number of countries, where their currencies are in a freefall against the Dollar!!

Remember, I am an old railway worker and knows nothing about finances or crypto, thus use your own discretion before investing.

I hope you enjoyed the post and that you have a wonderful day!

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