South African Rand

• Country: South Africa
• Currency: Rand
• Alias: South African rand
• ISO 4217 CODE: ZAR/710
• Symbol: R

The rand replaced the South African Pound upon the formation of the Republic of South Africa in 1961. The mining of gold and diamonds has been responsible for most of the nation’s wealth. In spite of the South Africa’s economic prosperity, the government’s longstanding policy of apartheid – or racial separation – caused severe economic hardships for decades until finally being abolished in the early 1990s. Today, South Africa enjoys the largest and most well developed economy on the continent, though significant portions of its population still live in poverty.

Background of the South African Rand

South Africa was a Dutch colony of most of its early existence, but was annexed by the British in 1805. The national currency subsequently became a derivative of the British pound sterling known as the South African pound. Upon the formation of the self-governing Republic of South Africa in 1961, the rand was adopted as the new national currency. The country’s central bank is known as the South African Reserve Bank, and is responsible for all monetary policy and minting operations.

Many people mistakenly believe that term “rand” is a shortened nick-name for the famous South African Krugerrand gold coin, but the currency actually takes its name from the Witwatersrand region of the country, made famous for its plentiful supplies of gold ore. Gold, other minerals, metals and agricultural products are South Africa’s primary exports. The country is also a member in the World Trade Organization.

The value of the rand was seriously diminished in the early 1980s, when the global community began to impose economic sanctions upon South Africa due to its government’s long-standing policy of apartheid, or racial segregation. In the early 1990s, these laws were removed from the books, and international sanctions were lifted, encouraging foreign investment. A major devaluation of the rand in 2001 was induced primarily by inflation.

In spite of having a relatively sophisticated economy and an active stock exchange, South Africa continues to struggle with poverty and an increasing rift between the “haves” and the “have nots.” Few South Africans deny that this disparity was born out of long-abolished apartheid policies, but it has been made worse in recent years by the country’s growing AIDS epidemic. HIV infection is currently estimated at some 5 million people, and healthcare costs are beginning to consume large portions of the national budget.

The Rand is divided into 100 cents. Denominations for coins are 1c, 2c, 5c, 10c, 20c and 50c. Denominations for banknotes are R10, R20, R50, R100, and R200