Question
A bought goods from his supplier in Pakistan which is paid in dollars. Goods supplied to A were sold to a customer of A's but the customer did not pay for the goods. A few years have passed since the goods were supplied and no payment is forthcoming. A had decided to pay the Pakistan supplier for the goods supplied. A has to arrange payment by arranging forex to pay the account, the forex will be bought in Rands and then gets paid to the supplier via a bank transfer. What rate must A work on to arrange the forex to settle the payment?
Answer
Basically the answer is the same as above. If for example, the price of the goods was $5000 3 years ago when the goods were purchased, then you have to ascertain how much gold could $5000 procure at that time. Now whenever you pay for the goods, you have to pay the same amount of gold or its current value.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 28 No 11
- PDF page
- 5