South African Rand ZAR Overview, History, Denominations

Individual merchants may also charge supplemental fees if you ask them to convert the price of an item to your home currency at checkout. Our currency rankings show that the most popular South African Rand exchange rate is the ZAR https://forexhero.info/ to USD rate. Below, you'll find South African Rand rates and a currency converter. 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.

Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling. When investing in foreign currencies, the South African currency is often overlooked. However, despite its recent volatility, the currency offers several advantages for investors.

1. Krugerrands are among the most frequently traded gold coins in the world market.
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3. The bank implements monetary policy by setting interest rates and buying or selling foreign currency.
4. The South African rand is made up of 100 cents and is often presented with the symbol R.
5. The 1 rand coin for circulation was introduced in 1967, followed by 2 rand coins in 1989 and 5 rand coins in 1994.

Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers. A series of exchange rate realignments, culminating in the ZAR/USD peg of 14 February 1986, followed by a managed float regime from 17 March 1992, has made its value relatively stable. In recent years, however, the currency has been relatively weak due to concerns about South Africa's political and economic stability. The coins still have legal tender status in South Africa, although Krugerrands were never assigned a rand value. Krugerrands were designed to derive their value exclusively from the price of gold at the time they are traded. This post has everything you need to know about converting South African Rand (ZAR) to USD, including where to secure the best exchange rates and how to avoid paying high fees on your conversion.

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 they are made. If the price of gold fluctuates, so does the value of Krugerrands. Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate.

Quick Conversions from South African Rand to United States Dollar : 1 ZAR = 0.0517919 USD

All South African coins and banknotes are produced and issued by the country’s central bank, the South African Reserve Bank. 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.

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. However, South Africa's central bank is committed to maintaining stability and ensuring that the currency remains an internationally competitive currency. Against these challenges, South Africa's central bank has cut interest rates to near-record lows to boost growth.

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 making use of all 11 official languages of South Africa. 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 even breaking beneath it sporadically. The recovery was short-lived, however, and by the end of 1989, the rand was trading at more than R2.50 per dollar. Gold is the country's most exported good, representing 14% of total exports in 2021 or $20.1 billion.

Which Countries Peg Their Currencies to the South African Rand?

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. 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 PowerTrend country's currency system. In sterling terms, it fell from around 9.5% to just over 7%, losing some 25% of its international trade-weighted value in just 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. This sudden depreciation in 2001 led to a formal investigation, which in turn led to a dramatic recovery.

One of the outspoken critics and leaders of the anti-apartheid struggle was Nelson Mandela—imprisoned for his views for 27 years. Up until the 1990s, the rand mainly contained photos of people and notable leaders from the apartheid regime. They add hidden markups to their exchange rates - charging you more without your knowledge. These are the average exchange rates of these two currencies for the last 30 and 90 days. Using a currency conversion calculator is often the easiest way to get an estimate when you’re converting currency. Since exchange rates fluctuate on a daily basis, using a calculator can ensure your math is correct.

Historical Exchange Rates For South African Rand to United States Dollar

You can send a variety of international currencies to multiple countries reliably, quickly, and safely, and at a rate cheaper than most banks. In 2012, the country began issuing its banknotes featuring an image of former South African President and anti-apartheid activist Nelson Mandela. In 2018, the country also issued commemorative banknotes of all its denominations, imprinted with new images of Mandela.

Second series

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. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance.

You can either make the conversion using a currency calculator or by hand. Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI's full course catalog and accredited Certification Programs. Take your learning and productivity to the next level with our Premium Templates. Adding exposure to the currency can reduce your overall risk while potentially earning healthy returns. This means there is potential for appreciation in the rand's value, especially if South Africa's economic fundamentals improve. It has been a freely floating currency since 1995, and market forces determine its value.

USD - US Dollar

By the end of 2002, the currency was trading under R9 to the dollar again, and by the end of 2004 was trading under R5.70 to the dollar. The currency softened somewhat in 2005, and was trading around R6.35 to the dollar at the end of the year. 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, during the second and third quarters of 2006 (i.e. April through September), the rand weakened significantly.

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. In 1986, following the substantial depreciation of the rand, the countries replaced the RMA with the Common Monetary Area (CMA) to manage monetary policy. The CMA and the Southern African Customs Union work together to help member nations. The terms of the new agreement provided Swaziland with additional flexibility in its monetary policy. 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.

One is the possibility of further rating downgrades, which could spook investors and lead to capital outflows. Some experts believe the currency could strengthen in the coming years due to South Africa's improving economic prospects. However, it plunged to its weakest level in over two years as the coronavirus pandemic took hold. On 14 February 2011, the ZAR traded at R6.90 to the dollar, its weakest point since 2009. South African ZAR coins all bear the same obverse of the state coat of arms with a sprig of Rand behind it.