



The rand saw a fairly auspicious beginning, trading at an exchange rate of 1.40 US dollars to 1 rand for its first ten years in existence. Krugerrands are gold coins that have legal tender status in South Africa but no assigned rand value. Krugerrands derive their value from the gold out of which city index review they are made. A number of central banks keep Canadian dollars as a reserve currency. It’s known locally as a buck or a loonie, with the two-dollar coin known as a toonie. The central bank has also implemented several other policy measures, including low inflation and high reserve requirements.
The currency has recovered but remains highly vulnerable to global economic and political uncertainties. In recent years, the ZAR has been one of the most volatile currencies, and its value has been highly affected by political and economic events in South Africa. Its banknotes have portraits of historical figures on the obverse with views of South African landscapes or landmarks on the reverse. The Bank of England printed early banknotes on behalf of the South African Reserve Bank.
However, over the ensuing decades, the rand exchange rate has depreciated or weakened, meaning it costs more rand to convert to one U.S. dollar. For example, it had cost approximately R2.55 to convert to one USD in 1990, and by 1999, the exchange rate was R6.14 to the USD. To trade the ZAR in the Forex market, traders can use a variety of trading instruments such as spot Forex, Forex futures, and Forex options. Spot Forex is the most popular way to trade the ZAR, and it involves buying or selling the currency at the current market price. Political Stability – Political instability can lead to a decrease in foreign investment, which can cause a depreciation of the ZAR.
For the most part, the rand’s value was linked to the price of gold, South Africa’s main export, during its early days. In recent years, the rand is somewhat correlated with gold prices as the South African economy still relies on its gold exports. Krugerrands are gold coins that were minted by the Republic of South Africa in 1967 to help promote South African gold to international markets and to make it possible for individuals to own gold.
Conversely, political stability can lead to an increase in foreign investment, which can cause an appreciation of the ZAR. Our currency rankings show that the most popular South African Rand exchange rate is the ZAR to USD rate. Below, you’ll find South African Rand rates and a currency converter. The controversial land reform programme that was initiated in Zimbabwe, followed by the September 11, 2001 attacks, propelled it to its weakest historical level of R13.84 to the dollar in December 2001. By the time that State President P. W. Botha made his Rubicon speech on 15 August 1985, it had weakened to R2.40 per dollar.
Rohan has also worked at Evercore, where he also spent time in private equity advisory. By 1992, the exchange rate was 3 rand per 1 US dollar, doubling to more than 6 ZAR/1 USD by 1999 and surging to nearly 14 ZAR/1 USD by 2001. In 1986, following the substantial depreciation of the rand, the countries replaced the RMA with the Common Monetary Area (CMA) to manage monetary policy.
This gives the country more fiscal flexibility to respond to economic shocks, which could lead to greater investor confidence and, eventually, a stronger currency. In particular, the country’s recent fbs broker review credit rating upgrades and increasing investor confidence could lead to more foreign capital inflows. This would help support the currency’s value and see it appreciate against other currencies.
Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets. The establishment of the Rand Monetary Area (RMA) in 1974 allowed Swaziland, Botswana, and Lesotho to issue currencies unique to their nations. Before the agreement, these countries had participated in an informal arrangement among the same countries where only the South African currency circulated.
However, despite its recent volatility, the currency offers several advantages for investors. As the official currency of South Africa, it is used to buy and sell a variety of goods and services throughout the country. Though its value has fluctuated over the years, the currency remains an important part of the South African economy. Looking ahead, the currency is likely to continue to see volatile swings as it feels the effects of global economic and political developments.
At the start of 2006, however, the currency resumed its rally and, as of 19 January 2006, was trading under R6 to the dollar again. However, the rand weakened significantly during etoro scam the second and third quarters of 2006 (i.e., April through September). Our currency rankings show that the most popular Canadian Dollar exchange rate is the CAD to USD rate.
ZAR has been officially used since its establishment in 1961 and is subdivided into 100 cents, replacing the complex system of pounds, shillings, and pence. This transition symbolized a pivotal moment in South Africa’s history as it simplified the country’s currency system. The South African rand was first produced in 1961, when South Africa became a republic. It replaced the South African pound, which used to be the legal currency of the Union of South Africa since it was established as a British Dominion in 1910. South African Rand refers to the legal currency of the Republic of South Africa.
Banknotes are printed and issued in denominations of 10, 20, 50, 100, and 200 rands. Global Economic Conditions – Global economic conditions such as the strength of the US dollar, the performance of other major currencies, and the state of the global economy can all impact the value of the ZAR. They add hidden markups to their exchange rates – charging you more without your knowledge. The bank implements monetary policy by setting interest rates and buying or selling foreign currency.
The South African rand, which is abbreviated ZAR, is the national currency of South Africa. Eswatini, Lesotho, and Namibia also peg their currencies to the rand. Three countries that peg their currency with the rand are Eswatini, Lesotho, and Namibia. During the global coronavirus pandemic, the rand weakened to more than R17 per USD and, as of February 2024, settled to nearly R19 per USD. Several African countries in the region still peg their national currencies to the rand, including the Eswatini Lilangeni and Lesotho Loti. In other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider.