South African rand Wikipedia
The ISO currency code “ZAR” is used in financial markets and the forex trading world to represent the South African Rand, distinguishing it from other currencies that use the dollar sign “R,” such as the Brazilian Real. In recent years, the Rand has continued to be affected by global economic sentiments, commodity prices, and changes in the political landscape within South Africa. Traders and analysts closely watch its fluctuating fortunes as they reflect not only the economic status of South Africa but also the broader emerging market environment.
South African Rand (ZAR): History of the Currency
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. To maintain this policy, the governor and 14-member board head the bank’s activities and work toward monetary goals.
South African Rand to
- Afrikaans was the first language on the 2, 10, and 50 rand, while English was the first on the 5 and 20 rand.
- Instead, a series of banknotes containing photos of the country’s treasured wildlife were introduced.
- The long-bodied candle would suggest an increased volatility now resuming, while the breakout suggest the direction we would be looking at trading the USD/ZAR pair.
- In 1986, following the substantial depreciation of the rand, the countries replaced the RMA with the Common Monetary Area (CMA) to manage monetary policy.
Forex, also known as foreign exchange or FX, is the global decentralized market for trading currencies. It is the largest and most liquid market in the world, with an average daily trading volume of over $5 trillion. Forex trading involves buying and selling currencies with the aim of making a profit from the fluctuations in their exchange rates. When the rand was introduced in 1961, its value was linked to the price of gold.
Why Is the South African Currency Called the ZAR?
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Understanding the South African Rand (ZAR)
A breakout is considered when the price moves above or below the support or resistance level, preferably with a long-bodied candle. The long-bodied candle would suggest an increased volatility now resuming, while the breakout suggest the direction we would be looking at trading the USD/ZAR pair. As he lives in South Africa, he wants to transfer this bonus into rands (ZAR). The current rate of USD/ZAR is very favorable for him and he does not want to run the risk of the dollar weakening or rand strengthening significantly between now and when he receives his bonus. The South African Rand has experienced significant volatility and fluctuations in its value over the decades, influenced by domestic factors and international economic conditions.
South African Rand to United States Dollar
Below, you’ll find South African Rand rates and a currency converter. 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. For the most part, the rand’s value was linked to the price of gold, South Africa’s main export, during its early days.
The Rand Monetary Area (RMA) illustrates a significant regional cooperation in currency management involving South Africa, Namibia, Lesotho, and Eswatini. Established to facilitate economic integration and mutual benefit among the member countries, the RMA allows the South African Rand to be used as a common currency. As mentioned earlier, the South African rand is one of the most actively traded currencies in the Forex market. Traders and investors around the world trade the ZAR against other major currencies such as the US dollar, euro, and Japanese yen.
The all-time low exchange rate for the rand relative to the US dollar was reached in 2016 when it hit an exchange rate of just below 18 ZAR/1 USD. In 2017, credit rating agency Moody’s rated the country of South Africa barely above junk status. From 2001 to 2006, the rand recovered about half of its value relative to the US dollar, moving back to an exchange rate of approximately six-to-one (rand to dollar). But then, in 2012, a decline in the key South African industry of mining sparked a fresh decline for the rand. By 2014, it was trading at a rate of slightly more than 15 ZAR/1 USD.
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. 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. Our currency rankings show that the most popular South African Rand exchange rate is the ZAR to USD rate.
Day traders, as the name implies, are concerned with trading intraday, i.e., entering and exiting their positions (perhaps multiple times) within the course of a day, not carrying their respective positions overnight. Speculating on the USD/ZAR currency pair quite simply means that the trader is taking a view that the currency pair in question is going to rise or fall over a specific period of time. Unlike with hedging, the trade is not linked to the protection of another asset, i.e., a bonus. The term “Rand” comes from the Witwatersrand, the ridge upon which Johannesburg was built and where significant gold deposits were discovered, leading to the gold rush in the area.
The Rand’s value began to erode in the 1980s due to increasing international pressure against the apartheid regime, high inflation rates, and political uncertainty within the country. This decline was markedly sharp after the government declared a debt repayment moratorium in 1985, which led to a rapid currency depreciation. The post-apartheid era brought initial stability, but the Rand suffered another major blow during the global financial crises and other local economic missteps.
It can be used for almost any currency exchange conversion under the sun. The South Africa Rand (ZAR) was formally brought to market in February 1961. Since then due to multiple factors, its value has decreased in depreciated. https://www.broker-review.org/ 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.
Stay on top of upcoming market-moving events with our customisable economic calendar. A series of small-bodied price candles often emphasizes this type of low volatility period. Commodity Prices – South Africa is a major exporter of commodities such as gold, platinum, and diamonds.
In the case of the USD/ZAR, we will look at the direction of the monetary policy in both the US and South Africa. Traders can follow IG’s news and trade ideas to keep an update on the central banks’ movement. Traders will want to keep an eye on the economic calendars, as high impact news have the potential to highly impact the USD/ZAR currency. Knowing when these catalysts are fxcm canada review going to occur gives us an expectation of when large moves may be realized in the forex market, giving the trader an opportunity to react. There are a number of technical analysis methods to trading instruments like the USD/ZAR. Speculative traders often adopt a day trading (below) or swing trading strategy (We will explain in How to trade USD/ZAR part two) for the USD/ZAR.
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