4 of 10  To start with some theory, Solnik’s 1 (1974) international Capital Asset Pricing Model predicts – given there are no transaction costs – that the regional diversification of a securities portfolio should be the same in all countries worldwide and it should copy the structure of the global portfolio.
For many of us in this room, cash is only a secondary form of payment and exchange, but physical money remains the foundation of the local economy. Every South African, young and old, uses money. For all the talk about a ‘cashless society’, digital transactions, mobile money and so-called cryptocurrencies, millions of South Africans still depend on cash for daily transactions.