South African rand
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226183799
2008-07-17T05:46:20Z
NJR ZA
2078755
pegged_by -> pegged_with
{{Infobox Currency
| currency_name_in_local = Suid-Afrikaanse rand <small>{{af icon}}</small>
| image_1 = 50-za-rand.JPG
| image_title_1 = 50 rand
| image_2 = 5-za-rand.JPG
| image_title_2 = New 5 rand (2004)
| iso_code = ZAR
| using_countries = '''[[Common Monetary Area]]''': {{LSO}}, {{NAM}}, {{ZAF}}, and<br>{{SWZ}}
| pegged_with = [[Lesotho loti]], [[Swazi lilangeni]] and [[Namibian dollar]] at par
| inflation_rate = 6.5% (South Africa only)
| inflation_method = [[Consumer price index|CPI]]
| inflation_source_date = [http://www.reservebank.co.za/ South African Reserve Bank], August 2007
| subunit_ratio_1 = 1/100
| subunit_name_1 = [[Cent (currency)|cent]]
| symbol = R
| plural = Rand
| symbol_subunit_1 = c
| used_coins = 5c, 10c, 20c, 50c, R1, R2, R5
| coin_article = Coins of the South African rand
| used_banknotes = R10, R20, R50, R100, R200
| issuing_authority = [[South African Reserve Bank]]
| issuing_authority_website = www.reservebank.co.za
}}
The '''rand''' is the [[currency]] of [[South Africa]]. It takes its name from the [[Witwatersrand]] (''White-waters-ridge'' in [[English language|English]]), the ridge upon which [[Johannesburg]] is built and where most of South Africa's gold deposits were found. The rand has the symbol "R" and is subdivided into 100 ''[[Cent (currency)|cent]]s'', symbol "c". The [[ISO 4217]] code is ''ZAR'', from [[Dutch language|Dutch]] ''Zuid-Afrikaanse rand''.<ref>[http://acronyms.thefreedictionary.com/Zuidafrikaanse+Rand+(South+African+Rand)] The Free Dictionary</ref>
The rand is the currency of the [[Common Monetary Area]] between [[South Africa]], [[Namibia]], [[Swaziland]] and [[Lesotho]].
==History==
[[Image:South Africa-Money-Old01.jpg|250px|thumb|Older notes and coins, mostly out of circulation now]]
The rand was introduced in 1961, coinciding with the establishment of the [[Republic of South Africa]]. It replaced the [[South African pound]] as legal tender, at the rate of 2 rand = 1 pound or 10 [[shilling]]s to the rand.
==Coins==
{{main|Coins of the South African rand}}
[[Image:RandCurrencyR5coinsOldNew.jpg|thumb|250px|The old and new R5 coins]]
Coins were introduced in 1961 in denominations of ½, 1, 2½, 5, 10, 20, 50 cents. In 1965, 2-cent coins replaced the 2½-cent coins. The ½-cent coin was last struck for circulation in 1973. The 2-rand was introduced in 1989, followed by 5-rand coins 1990, respectively. The 1- and 2-cent coins were discontinued in April 2002, primarily due to inflation having devalued them. All prices are now rounded to the nearest 5 cents.
In an effort to curb counterfeiting, a new R 5 coin was released in August 2004, as well as new banknotes in February 2005. Security features introduced on the coin include a [[Bi-metallic coins|bi-metal]] design (similar to the [[1 euro coins|€1]] and [[2 euro coins|€2 coins]], the [[British Two Pound coin|British £2 coin]] and the [[Toonie|Canadian $2 coin]]), a specially-serrated security groove along the rim and micro-lettering. The new notes also feature a number of new security features.
==Banknotes==
[[Image:Randcurrency.jpg|thumb|250px|New rand notes series]]
The first series of rand banknotes was introduced in 1961 in denominations of 1, 2, 10 and 20 rand, with similar designs and colours to the preceding pound notes to ease the transition. They bore the image of [[Jan van Riebeeck]], the first [[Dutch East India Company|V.O.C.]] administrator of [[Cape Town]]. Like the last [[South African pound|pound]] notes, they came in two variants, one with [[English language|English]] written first and the other with [[Afrikaans]] written first. This practice was continued in the 1966 series which included the first 5 rand notes but did not include the 20 rand denomination.
The 1978 series began with denominations of 2, 5 and 10 rand, with 20 and 50 rand introduced in 1984. This series saw a major design change. In addition, the series has only one variant for each denomination of note. Afrikaans was the first language on the 2, 10 and 50 rand, while English was the first language on 5 and 20 rand. The notes still bore the image of [[Jan van Riebeeck]].
In the 1990s, the notes were redesigned with images of the [[Big Five game|Big Five]] wildlife species. With the 2 and 5 rand coins replacing notes, notes were introduced in 1994 for 100 and 200 rand.
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 are printed in English, while two other languages are printed on the reverses, making all eleven official [[languages of South Africa]] available.
==Brief exchange rate history==
A rand was worth more than a [[U.S. dollar]] from the time of its inception in 1961 until 1982, when mounting political pressure combined with sanctions placed against the country because of [[apartheid]] started to erode its value. The currency broke above parity with the dollar for the first time in March 1982, and continued to trade between R 1–R 1.30 to the dollar until June 1984, when depreciation of the currency gained momentum. By February of 1985, it was trading at over R 2 per dollar, and in July that year all [[Foreign exchange market|foreign exchange]] trading was suspended for 3 days to try and stop the devaluation.
By the time that [[State President of South Africa|State President]] [[PW Botha]] made his infamous [[Rubicon]] speech on [[15 August]] 1985, it had weakened to R 2.40 per dollar. The currency recovered somewhat between 1986–88, trading near the R 2 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 levels of more than R 2.50 per dollar.
As it became clear in the early 1990s that the country was destined for black majority rule and one reform after the other was announced, uncertainty about the future of the country hastened the depreciation until the level of R 3 to the dollar was breached in November 1992. A host of local and international events influenced the currency after that, most notably the [[South African general election, 1994|1994 democratic election]] which saw it weaken to over R 3.60 to the dollar, the election of [[Tito Mboweni]] as the new governor of the [[South African Reserve Bank]], and the inauguration of President [[Thabo Mbeki]] in 1999 which saw it quickly slide to over R 6 to the dollar. The controversial land reform program that was kicked off in [[Zimbabwe]], followed by the [[September 11, 2001 attacks]], propelled it to its weakest historical level of R 13.84 to the dollar in December 2001.
This sudden depreciation in 2001 led to a formal investigation, which in turn led to a dramatic recovery. By the end of 2002, the currency was trading at under R 9 to the dollar again, and by the end of 2004 was trading at under R 5.70 to the dollar. The currency softened somewhat in 2005, and was trading at around R 6.35 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 at under R 6 to the dollar again. However, during the second and third quarters of 2006 (ie April through September), the Rand weakened significantly. In Sterling terms, it fell from around 9.5p to just over 7p, losing some 25% of its international trade-weighted value in just six months. Late in 2007, the Rand rallied modestly to just over 8p, only to experience a precipitous slide during the first quarter of 2008. As at the time of writing (June 10th, 2008) the Rand stands at just over 6.4p (approx 12.6 US cents).
This downward slide could be attributed to a range of factors: South Africa's worsening current account deficit, which widened to a 36-year high of 7.3% of Gross Domestic Product (GDP) in 2007; inflation at a five-year high of just under 9%; escalating global risk aversion as investors' concerns over the spreading impact of the sub-prime crisis grew; and a general flight to "safe havens", away from the perceived risks of emerging markets. The Rand depreciation was exacerbated by the Eskom electricity crisis, which resulted in the utility being unable to meet the country's rapidly growing energy demands. In particular, major mines were shut down, with Eskom warning that major new industrial projects could not be powered until additional power generation capacity could be brought on stream - something unlikely to be achieved for at least another 5 years. This would have a significant impact on production and exports by South Africa's mining industry, and would thus worsen an already worrisome current account deficit. It is particularly unfortunate that this should have happened at a time of record high prices for hard and soft commodities.
{{Exchange Rate|ZAR}}
==See also==
*[[Witwatersrand]]
*[[Krugerrand]]
*[[Economy of South Africa]]
==References==
{{reflist}}
{{refbegin}}
*{{numis cite SCWC | date=1991}}
*{{numis cite SCWPM | date=1994}}
{{refend}}
==External links==
{{Standard numismatics external links
| world_coin_gallery_1_url = Safrica
| world_coin_gallery_1_name = South Africa
| banknote_world_1_url = south_africa
| banknote_world_1_name = South Africa
| dollarization_1_url = za
| dollarization_1_name = South Africa
| dollarization_2_url = bw
| dollarization_2_name = Botswana
| dollarization_3_url = ls
| dollarization_3_name = Lesotho
| dollarization_4_url = na
| dollarization_4_name = Namibia
| dollarization_5_url = sz
| dollarization_5_name = Swaziland
| gfd_1_url = South_Africa
| gfd_1_name = South Africa
| gfd_data_1_url = 4021
| gfd_data_1_name = South Africa Rand
| show_gfd_excel = Y
}}
*[http://www.federalreserve.gov/releases/h10/Hist/dat89_sf.txt US Federal Reserve Bank historical exchange rate data]
{{n-start}}
{{n-before|rowspan=5|currency=[[South African pound]]|ratio=2 rand = 1 South African pound = 1 British pound|reason=decimalization}}
{{n-currency|colspan=3|location=[[South Africa]]|start=1961}}
{{n-after}}
{{n-currency|location=[[South West Africa]]|start=1961|end=1990|note=administered by/occupied by [[South Africa]] since 1915}}
{{n-currency|location=[[Namibia]]|start=1990|end=1993}}
{{n-legaltender|location=[[Namibia]]|start=1993}}
{{n-after|currency=[[Namibian dollar]]|reason=withdrawal from [[Common Monetary Area]]|note=dollar introduced in 1993, with South African rand remaining legal tender|ratio=at par}}
{{n-currency|location=[[Basutoland]]|start=1961|end=1966}}
{{n-currency|location=[[Lesotho]]|start=1966|end=1980}}
{{n-legaltender|location=[[Lesotho]]|start=1980}}
{{n-after|currency=[[Lesotho loti]]|note=loti introuced in 1980, with South African rand remaining legal tender}}
{{n-currency|location=[[Swaziland]]|start=1961|end=1974}}
{{n-legaltender|location=[[Swaziland]]|start=1974|end=1986}}
{{n-circulates|location=[[Swaziland]]|start=1986}}
{{n-after|currency=[[Swazi lilangeni]]|note=lilangeni introduced in 1974. South African rand continues to circulate unofficially}}
{{n-currency|location=[[Bechuanaland Protectorate]]|start=1961|end=1966}}
{{n-currency|colspan=2|location=[[Botswana]]|start=1966|end=1976}}
{{n-after|currency=[[Botswana pula]]|ratio=at par|reason=creation of independent currency}}
{{n-end}}
{{Currencies of Africa}}
{{Currency signs}}
[[Category:Economy of South Africa]]
[[af:Suid-Afrikaanse Rand]]
[[ca:Rand]]
[[cs:Jihoafrický rand]]
[[da:Rand]]
[[de:Südafrikanischer Rand]]
[[es:Rand sudafricano]]
[[eo:Rando (ZAR)]]
[[fi:Randi]]
[[fr:Rand (monnaie)]]
[[ko:남아프리카 공화국 랜드]]
[[bpy:খা আফ্রিকান রান্ড]]
[[id:Rand Afrika Selatan]]
[[it:Rand sudafricano]]
[[lt:Randas (Pietų Afrika)]]
[[hu:Dél-afrikai rand]]
[[nl:Rand (munteenheid)]]
[[ja:ランド (通貨)]]
[[no:Rand (valuta)]]
[[pl:Rand (waluta)]]
[[ro:Rand]]
[[pt:Rand]]
[[ru:Южноафриканский рэнд]]
[[simple:South African rand]]
[[sk:Rand (mena)]]
[[sv:Rand (valuta)]]
[[tg:Ранди Африқои Ҷанубӣ]]
[[zh:南非兰特]]