It prints the money locally through its South African Bank Note Company (SABN) subsidiary. ZAR is the currency code for the South African rand, the official currency of South Africa. Established in 1961, the rand is named after the Witwatersrand, the ridge upon which Johannesburg is built, and where a significant portion of South Africa’s gold production once occurred. The currency is widely recognised in local and international markets, making it essential for those looking to understand more about South Africa’s economy. As a trading center, multiple currencies circulated throughout South Africa.
The Rand often attracts traders who are looking for high-risk, high-reward opportunities. By 1985, the rand was trading at an exchange rate of 2 rands to 1 US dollar, and South Africa even briefly suspended all foreign exchange trading in the rand in an attempt to stem the slide in the currency’s value. 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. First minted in 1967, krugerrands are gold coins that raise the profile of the South African gold trade in international markets and make it possible for individuals to own gold as an investment.
By the late 1980s and early 1990s, the political landscape was changing. Nelson Mandela, a leader of the anti-apartheid struggle, was released from prison after 27 years on February 11, 1990. The South African rand (ZAR) is the currency of South Africa and is issued by the South African Reserve Bank.
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High rates of poverty, crime, political unrest, and unemployment continue to plague the country and the value of its currency. 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.
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For example, if you come across 2- or 5-rand banknotes, the central bank will exchange them for face value. Coins were introduced in 1961 in denominations of 1⁄2, 1, 2+1⁄2, 5, 10, 20, and 50 cents. The 1 rand coin for circulation was introduced in 1967, followed by 2 rand coins in 1989 and 5 rand coins in 1994. The rand’s value can change over time compared to the United States dollar (USD), the Australian dollar, the British pound sterling (GBP), and other world currencies.
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Banknotes are issued in denominations of 10, 20, 50, 100, and 200 rands. The South African rand (ZAR) is the official currency of the nation of South Africa, with the symbol ZAR being the currency abbreviation for the rand in foreign exchange markets. South Africa’s trade relationships, popular short term trading strategies used by forex traders particularly with China and Europe, directly impact the rand through the currency exchange rates.
To this day they are among the most frequently traded gold coins in the world market. However, international transactions may incur high conversion fees, so looking up the rand exchange rate before spending money in South Africa is important. Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate.
Through the ISO system, the rand is easily traded on international platforms, ensuring smooth transactions in various currency exchanges. The SARB celebrated its 100th birthday in 2021, so it’s the oldest central bank on the continent. Since introducing the rand in 1961, the SARB has controlled the design and creation of coins and banknotes.
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Their value is based entirely on their gold content and fluctuates with the price of gold. For the most part, the rand’s value has been 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 gold exports. 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 most of South Africa’s gold deposits, is located on this ridge.
- Taking on responsibilities similar to those of other central banks, the SARB is also a creditor in certain situations, a clearing bank, and a major custodian of gold.
- In recent years, the rand is somewhat correlated with gold prices as the South African economy still relies on gold exports.
- Established in 1961, the rand is named after the Witwatersrand, the ridge upon which Johannesburg is built, and where a significant portion of South Africa’s gold production once occurred.
- Or, work backward by determining how many rands you need (such as 1,000 ZAR) and see how much that’s equivalent to in euro (EUR), GBP, or another global currency.
- But then, in 2012, a decline in the key South African industry of mining sparked a fresh decline for the rand.
- The all-time low exchange rate for the rand relative to the US dollar was reached in 2016 when it hit an exchange rate of just below 18 ZAR/1 USD.
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 how to write rfp for software Cape Colony was put on a sterling basis, though other currencies, including Spanish Dollars, US Dollars, French Francs, and Indian Rupees continued to circulate. In 1921, the Reserve Bank of South Africa was established as the central bank. In 1961, the South African Rand replaced the Pound under a decimalized system.
- In the 1600s, traders from the Netherlands brought the Dutch guilder currency to South Africa, where it became the primary currency for many years.
- South African Rand refers to the legal currency of the Republic of South Africa.
- 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.
- For example, if you want to convert the U.S. dollar into rand, you can see how much 1 USD is worth in South African money.
This includes intervention in the foreign currency markets when necessary. 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 U.S. dollar is the currency most used in international transactions.
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. Whether you need to make cross-border payments or FX risk management solutions, we’ve got you covered. Schedule international transfers across 130 currencies in 190+ countries. The rand was one of the emerging market currencies that was hit hard by the 2008 financial crisis and the coronavirus pandemic.
In conclusion, ZAR stands for the South African rand, a currency that embodies the complexity and richness of South Africa’s history and economy. Understanding what ZAR stands for is not simply a matter of knowing an abbreviation; it’s about grasping the broader implications of this currency in both local and global contexts. Whether you are a traveller, investor, or business owner, having a firm understanding of ZAR can significantly impact your interactions and decisions related to finance in and around South Africa. This sudden depreciation in 2001 led to a formal investigation and a dramatic recovery. By the end of 2002, the currency was trading under R9 to the dollar again, and by the end of 2004, it was trading under R5.70. The currency softened somewhat in 2005, trading around R6.35 to the dollar at the end of the year.
The South African currency’s decline in value was further exacerbated by the country’s significant trade account deficit worldwide and by a slowdown in the economy of China, one of South Africa’s key trading partners. From 2001 to 2006, the rand recovered about half of its value relative to the US dollar, moving back to an exchange rate of approximately six-to-one (rand to dollar). But then, in 2012, a decline in the key South African industry of mining sparked a fresh decline for the rand. By 2014, it was trading at a rate of slightly more than 15 ZAR/1 USD. Krugerrands are gold coins that are bought primarily by investors in the precious metal.
Up until the 1990s, the rand was illustrated with images of white Europeans from South Africa’s colonial past. Post-apartheid banknotes featured photos of the crossing moving average strategy country’s treasured wildlife. In 2012, a banknote with an image of former President Nelson Mandela was issued as the first in a series.
ISO 4217 is a standard established by the International Organization for Standardization, and it assigns a three-letter alphabetic code to each currency in the world. The first two letters of the ZAR code (“ZA”) refer to Zuid-Afrika, the Dutch name for South Africa, and the third letter (“R”) stands for Rand. Denominated as “Rand,” the physical and digital currency is used in all forms of transaction within South Africa and in some neighboring countries like Namibia and Lesotho through informal arrangements. In sterling terms, it fell from around 9.5% to just over 7%, losing some 25% of its international trade-weighted value in six months. In late 2007, the rand rallied modestly to just over 8%, only to experience a precipitous slide during the first quarter of 2008.
In 1782, they brought the first paper money into Cape Town as the rix dollar. Compare our rate and fee with our competitors and see the difference for yourself. It is the official currency of South Africa and is also used in the Common Monetary Area of Lesotho, Namibia, and Eswatini.