South African rand (ZAR), is South Africa’s currency. It is issued by South African Reserve Bank. South African rands are identified by the symbol R. They can be divided into 100 cents. The name is derived from the word ‘Witwatersrand’, which means ‘ridge of white waters’. This is the ridge where South Africa’s most valuable gold deposits are located and also where Johannesburg was constructed.
Economy
- Apartheid’s era left many economic challenges, including poverty, ineligibility for economic empowerment, and poor public transport. South Africa’s unemployment rate is high at 25%, and the Gini coefficient shows that South Africa has low income inequality.
- While growth has improved in the last few years, unemployment is high and obsolete infrastructure hinders growth.
- In 1956, the Commission recommended that sterling be abandoned and all associated terms such pounds, shillings, and pence replaced by a currency called “rand”.
- The currency’s value began to decline from 1982 due to international pressure. To stop devaluation, foreign currency transactions were temporarily suspended from July 1985 for three days.
- Due to uncertainty surrounding apartheid reforms, and the black majority rule, the currency continued to decline. In 1992 the currency lost R3 to the dollar. It fell to R6 to the dollar in 1999. In December 2001, the currency fell to R 13.84 per dollar. Since then, the currency has stabilized.
Histories
- A Commission established in 1956 recommended giving up the British Pound and associated terms pounds, shillings and pence in favor of a new currency named “Rand.”
- On February 14, 1961, the South African Rand replaced Round Sterling and was made legal tender at 2 Rand = 1 Pound 10 Shillings. 1961 saw the nation become a republic, and then it was expelled from the Commonwealth of Nations by a white-only referendum.
- Since 1982, the currency began to lose its value due to increasing international pressures and sanctions. To stop devaluation, foreign currency transactions were temporarily suspended from July 1985 for three days.
