South African Rand ZAR: History of the Currency

This is to ensure that the interests of the economy precede those of any private individual. To maintain this policy, the governor and 14-member board head the bank’s activities and work toward monetary goals. The South African rand (ZAR) was first introduced in February 1961, just before the Republic of South Africa was established. The rand replaced the South African pound at a rate of 2 rand to 1 pound. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.

Our currency rankings show that the most popular South African Rand exchange rate is the ZAR to USD rate. The currency code for Rand is ZAR, and the currency symbol is R. Below, you’ll find South African Rand rates and a currency converter. The 2005 series has the same principal design but with additional security features, such as colour-shifting ink on the 50 rand and higher and the EURion constellation. The obverses of all denominations were printed in English, while two other official languages were printed on the reverse, thus using all 11 official languages of South Africa.

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However, the rand weakened significantly during the second and third quarters of 2006 (i.e., April through September). 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. The currency recovered somewhat between 1986 and 1988, trading near the R2 level most of the time and breaking beneath it sporadically. The recovery was short-lived; by the end of 1989, the rand was trading at more than R2.50 per dollar. Through the RMA agreement, the South African rand remained legal tender in all member nations and circulated alongside the national money of the member nations.

USD to ZAR – Convert US Dollars to South African Rand

Modeled on the Bank of England (BoE), the South African Reserve Bank (SARB) stands as the monetary authority for South Africa and issues its currency. Taking on major responsibilities similar to those of other central banks, the SARB is also known as a creditor in certain situations, a clearing bank, and a major custodian of gold. Krugerrands are among the most frequently traded gold coins in the world market.

Also, in 2012, a rand banknote containing a picture of former President Nelson Mandela was released as part of the Mandela series. Banks and traditional providers often have extra costs, which they pass to you by marking up the exchange rate. Our smart tech means we’re more efficient – which means you get a great rate. They add hidden markups to their exchange rates – charging you more without your knowledge.

R1.000 ZAR = $0.05634 USD

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Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses.

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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. Interestingly, the SARB remains a wholly-owned private entity with more than 800 shareholders; these shareholders are regulated by owning less than 1% of the total number of outstanding shares.

These are the highest points the exchange rate has been at in the last 30 and 90-day periods. Compare our rate and fee with our competitors and see the difference for yourself. 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 https://forexanalytics.info/ to the dollar in December 2001. In 2013, the 2012 series was updated with the addition of the EURion constellation to all five denominations.[43] They were entered into circulation on 6 November 2013. 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.

If the price of gold changes, so does the price of Krugerrands. South Africa experienced major political changes in the early 1990s. For years, South Africa was ruled by apartheid; by the late 1980s and early 1990s, the political landscape had changed. One of the outspoken critics and leaders of the anti-apartheid struggle was Nelson Mandela—imprisoned for his views for 27 years.

1. The 1 rand coin for circulation was introduced in 1967, followed by 2 rand coins in 1989 and 5 rand coins in 1994.
2. The name is derived from the word ‘Witwatersrand’, which means ‘ridge of white waters’.
3. The currency softened somewhat in 2005, trading around R6.35 to the dollar at the end of the year.
4. 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.
5. This series had only one language variant for each denomination of note.

As of early 2024, the rand was worth approximately 0.05 USD. You can send a variety of international currencies to multiple countries reliably, quickly, and safely, and at a rate cheaper than most banks. As a trading center, multiple currencies circulated throughout South Africa. During the late 17th century, the Rixdollar was used and was the first South African currency to include paper notes. During British occupation, in 1826, the Cape Colony was put on a sterling basis, though other currencies, including Spanish Dollars, US Dollars, French Francs, and Indian Rupees continued to circulate.

Coins were introduced in 1961 in denominations of 1⁄2, 1, 2+1⁄2, 5, 10, 20, and 50 cents. The 1⁄2 cent coin was last struck for circulation in 1973. The 1 rand coin for circulation was introduced in 1967, followed by 2 rand coins in 1989 and 5 rand coins in 1994. When the rand was introduced in 1961, its value was linked to the price of gold. After the end of apartheid, the rand’s value began to fluctuate more as South Africa’s economy became more closely tied to the global economy. The rand was also one of the emerging market currencies that was hit hard by the 2008 financial crisis and the coronavirus pandemic.

Gold is the country’s most exported good, representing 14% of total exports in 2021 or $20.1 billion. South Africa also exports other commodities, including palladium and iron ore, to predominately China, Europe, and the United States.However, major world developments have also determined ZAR’s price trajectory. The September 11 attacks in 2001 created global uncertainty, and the rand took a steep dive, falling to R13 per U.S. dollar (USD).

The South African rand is made up of 100 cents and is often presented with the symbol R. The rand comes from the word “Witwatersrand,” which means “white waters ridge.” Johannesburg, the location of a majority of South Africa’s gold deposits, is located on this ridge. Keep in mind that exchanging currency often comes with added fees that a conversion calculator won’t be able to predict. For instance, credit card companies and ATM networks usually charge a 1% conversion fee on all foreign transactions. Individual merchants may fxtm forex broker review also charge supplemental fees if you ask them to convert the price of an item to your home currency at checkout.

The 1978 series began with denominations of 2, 5, 10, and 20 rand, with a 50 rand introduced in 1984. This series had only one language variant for each denomination of note. Afrikaans was the first language on the 2, 10, and 50 rand, while English was the first on the 5 and 20 rand.