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. The U.S. dollar is the currency most used in international transactions. Several countries use the U.S. dollar as their official currency, and many others allow it to be used in a de facto capacity.

Which Countries Peg Their Currencies to the South African Rand?

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. The South African rand (ZAR) is the national currency of the country of South Africa, with the symbol ZAR being the currency abbreviation for the rand in foreign exchange (forex) markets. The rand was introduced in 1961 and takes its name from the Witwatersrand, the ridge upon which Johannesburg is built and where most of South Africa’s gold deposits were found. The Rand circulates freely in Namibia, Swaziland and Lesotho. The establishment of the Rand Monetary Area (RMA) in 1974 allowed Swaziland, Botswana, and Lesotho to issue currencies unique to their nations.

Popular South African Rand (ZAR) Currency Pairings

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. Once you know that information, multiply the amount you have in ZAR by the current exchange rate.

You can either make the conversion using a currency calculator or by hand. Three countries that peg their currency with the rand are Eswatini, Lesotho, and glucose management indicator Namibia. In other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider. The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency pairs.

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. Krugerrands are one of the most frequently traded forms of gold. Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate. Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers.

Historical Exchange Rates For South African Rand to United States Dollar

To maintain this policy, the governor and 14-member board head the bank’s activities and work toward monetary goals. 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. Compare our rate and fee with our competitors and see the difference for yourself.

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. Krugerrands are gold coins that were minted by the Republic of South Africa top 10 best forex trading strategies and tips in 2020 in 1967 to help promote South African gold to international markets and to make it possible for individuals to own gold. Up until the early 1970s, the rand was worth around R1.5 per U.S. dollar (USD). 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.

1. The Rand circulates freely in Namibia, Swaziland and Lesotho.
2. Below, you’ll find South African Rand rates and a currency converter.
3. The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency pairs.
4. If you don’t spend all of your USD on your trip, you have 30 days upon your re-entry to South Africa to sell it back to an authorized dealer.
5. Krugerrands were designed to derive their value exclusively from the price of gold at the time they are traded.

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. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate.

Several African countries in the region still peg their national currencies to the rand, including the Eswatini Lilangeni and Lesotho Loti. 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. This is to ensure that the interests of the economy precede those of any private individual.

Conversion Table

The rand was also one of the emerging market currencies that was hit hard by the 2008 financial crisis and the coronavirus pandemic. As of early 2024, the rand was worth approximately 0.05 USD. 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. In 1921, the Reserve Bank of South Africa was established as the central bank.

Krugerrands were designed to derive their value exclusively from the price of gold at the time they are traded. If the price of gold changes, so does the price of Krugerrands. These are the average exchange rates of these two currencies for the last 30 and 90 days. You can send a variety of international currencies to multiple countries reliably, quickly, and safely, and at a rate cheaper than most banks. For the most part, the rand’s value was linked to the price of gold, South Africa’s main export, during its early 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. 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. The coins still have legal tender status in South Africa, although Krugerrands were never assigned a rand value.

South African Rand Exchange Rate

The 1 rand coin for circulation was introduced in 1967, followed by 2 rand coins in 1989 cftc commitments of traders and 5 rand coins in 1994. The U.S. dollar is a global reserve currency, which means foreign central banks hold it in their reserves in addition to their own currency. USD is used in about 40% of global trade and nearly 80% of all global cross-border transactions, according to financial services firmSchwab.

In recent years, the rand is somewhat correlated with gold prices as the South African economy still relies on its gold exports. Instead, a series of banknotes containing photos of the country’s treasured wildlife were introduced. Also, in 2012, a rand banknote containing a picture of former President Nelson Mandela was released as part of the Mandela series. 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.