South African rand facts for kids

Quick facts for kids South African rand
List 10 other official names: Suid-Afrikaanse rand  (Afrikaans) iRanti yeSewula Afrika  (Southern Ndebele) iRanti yoMzantsi Afrika  (Xhosa) iRandi laseNingizimu Afrika  (Zulu) liRandi laseNingizimu Afrika  (Swazi) Ranta ya Afrika Borwa  (Northern Sotho) Ranta ya Afrika Borwa  (Sotho) Ranta ya Aforika Borwa  (Tswana) Rhandi ya Afrika-Dzonga  (Tsonga) Rannda ya Afurika Tshipembe  (Venda)
ISO 4217 Code	ZAR
Official user(s)	South Africa  Namibia  Lesotho  Eswatini
Unofficial user(s)	Angola  Malawi  Zambia  Zimbabwe
Inflation	7.5% (South Africa only)
Source	South African Reserve Bank, Sept 2022
Method	CPI
Pegged by	Namibian dollar Lesotho loti Swazi lilangeni (at par)
Subunit
1⁄100	Cent
Symbol	R
Cent	c
Plural	rand
Coins	10c, 20c, 50c, R1, R2, R5
Rarely used	1 cent, 2 cents (discontinued 2002) and 5 cents (discontinued 2012)
Banknotes	R10, R20, R50, R100, R200
Printer	South African Bank Note Company

The South African rand, often just called the rand, is the official money of South Africa. Its symbol is R, and its code is ZAR. The rand is divided into 100 cents, shown with a "c" symbol. For example, R1.50 means one rand and fifty cents.

The South African rand is also used as official money in Namibia, Lesotho, and Eswatini. These countries have their own money (like the Namibian dollar), but they are linked to the rand. This means their money has the same value as the rand. The rand was also used in Botswana until 1976.

What's in a Name?

The name "rand" comes from the Witwatersrand. This is a ridge of "white waters" in English. The word rand means 'ridge' in Afrikaans and Dutch. The city of Johannesburg is built on this ridge. It's also where most of South Africa's gold was found.

When you talk about the rand, the word stays the same for one or many. You say "one rand" or "ten rand," not "ten rands."

Rand's Journey Through Time

The rand was first used in South Africa in 1961. This was just three months before South Africa became a republic. Before the rand, South Africa used pounds, shillings, and pence. A group was set up in 1956 to decide on using a simpler money system.

The rand replaced the South African pound. One pound was worth two rand. To help people learn about the new money, the government used a cartoon character. His name was Decimal Dan, "the rand-cent man." There was also a radio song to teach people.

How the Rand's Value Changed

Early Years: 1961 to 2000

Value of the South African rand to the United States dollar from 1975 to 2015.

When the rand started in 1961, one rand was worth about US$1.40. This means the rand was stronger than the US dollar. But things started to change in the 1980s.

South Africa faced high inflation, meaning prices went up quickly. There was also a lot of political pressure and sanctions from other countries. These sanctions were against the apartheid system, which was unfair. These issues made the rand lose its value.

By March 1982, the US dollar became stronger than the rand for the first time. The rand kept losing value, especially after 1984. In February 1985, it took more than R2 to equal one US dollar. At one point, foreign exchange trading was stopped for three days to try and help the rand.

The rand got a little stronger between 1986 and 1988. But by the end of 1989, it was trading at more than R2.50 per dollar. In the early 1990s, South Africa was moving towards a new government. This caused more uncertainty, and the rand weakened further.

After the 1994 general election, the rand weakened to over R3.60 per dollar. Later, events like the land reform in Zimbabwe and the September 11, 2001 attacks made the rand even weaker. In December 2001, it hit its lowest point, with R13.84 needed for one US dollar.

Rand's Ups and Downs: 2001 to 2011

Older South African rand notes and coins.

After the big drop in 2001, the rand started to recover. By the end of 2004, it was much stronger, trading under R5.70 per dollar. It weakened a bit in 2005 but then got stronger again in early 2006.

However, the rand weakened a lot in the middle of 2006. It lost about 25% of its value in six months. In late 2007, it got a bit stronger. But then it dropped sharply again in early 2008.

This drop was due to several things. South Africa's economy was spending more than it earned from other countries. Inflation was also high. Plus, there was a global financial crisis, making investors cautious. The Eskom electricity crisis also made things worse. This was when the power company couldn't meet the country's energy needs.

Recent Times: 2012 to Present

In 2013, problems in the mining industry caused the rand to reach new lows. By January 2014, it was R11.25 to the dollar. This was partly because the US Federal Reserve decided to reduce its economic support. This led to many investors selling off money from developing countries.

In 2014, the rand had its worst year against the US dollar since 2009. By March 2015, it was at its weakest since 2002. In December 2015, the rand dropped over 10% in just four days. This happened after President Jacob Zuma made a surprising change to his finance minister.

The rand was very unstable in January 2016. It hit an all-time low of R17.9169 to the US dollar on January 9, 2016. This was partly because Japanese investors were pulling out their money. Concerns about China's economy also played a role.

After the United Kingdom voted to leave the European Union in June 2016, the rand dropped more than 8%. This was the biggest single-day drop since 2008. Investors moved their money to safer currencies like the US dollar. There were also worries about how Brexit would affect South Africa's economy.

In April 2017, experts thought the rand would stay stable. But when President Jacob Zuma won a vote of no confidence in August 2017, the rand dropped again. In September 2017, Goldman Sachs said that the debt and corruption at Eskom Holdings were the biggest risks to South Africa's economy. In October 2017, the rand got stronger again. South Africa's economy relies on foreign money to cover its budget and trade deficits. In November 2017, the rand fell when a key budget official resigned.

In October 2022, the rand reached its lowest point in two years. It hit R18.46 to the US dollar on October 25, 2022.

Rand Coins

A 5 rand bimetallic coin issued in 2004.

Coins were first made in 1961. They came in values like 1, 5, 10, 20, and 50 cents. Later, 1-rand, 2-rand, and 5-rand coins were added.

The 1-cent, 2-cent, and 5-cent coins are no longer made. This is because inflation made them worth very little. However, they are still official money. Shops usually round prices to the nearest 10 cents.

To stop fake coins, a new 5-rand coin was released in 2004. It has special features, like being made of two different metals. It also has a special edge and tiny letters to make it harder to copy.

In May 2023, the South African Reserve Bank announced new coins. They will have the same values but new pictures. For example, the 10c coin will show a Cape Honey Bee. The R5 coin will show a Southern Right Whale.

Rand Banknotes

The first rand banknotes came out in 1961. They were in values of 1, 2, 10, and 20 rand. They looked similar to the old pound notes to make the change easier. These notes showed a picture that people thought was Jan van Riebeeck. He was the first Dutch administrator of Cape Town. Later, it was found that the picture was actually of someone else.

In 1966, new banknote designs were released. These looked different from the old pound notes. They were mostly one colour per note. Later, smaller 1-rand and 2-rand notes were added. Each note had both English and Afrikaans words on it.

The 1978 series had notes of 2, 5, 10, and 20 rand. A 50-rand note was added in 1984. In this series, each note only had one main language. The 1-rand note was replaced by a coin.

Rand banknotes and coins.

South African ATM showing R50 and R100 banknotes.

In the 1990s, the notes were redesigned again. They featured pictures of the Big Five wild animals. These were the rhino, elephant, lion, buffalo, and leopard. Notes for 10, 20, and 50 rand came out first. Coins replaced the 2-rand and 5-rand notes. This was because these low-value notes wore out quickly. In 1994, 100-rand and 200-rand notes were introduced.

The 2005 series kept the same animal designs. But they added new security features. For example, the ink on higher value notes changes colour. The front of all notes was in English. The back had two other official languages of South Africa.

In 2010, some 200-rand banknotes from the 1994 series were removed. This was because there were many high-quality fake notes.

In 2011, some 100-rand banknotes were printed incorrectly. They didn't have special printing that glows under UV light. Some notes were even shredded because they had the same serial numbers as other notes.

On February 11, 2012, President Jacob Zuma announced new banknotes. These notes would feature the image of Nelson Mandela. They started being used on November 6, 2012. They came in the same values: 10, 20, 50, 100, and 200 rand.

In 2013, the 2012 series was updated with more security features. These notes also started circulating on November 6, 2013.

On July 18, 2018, special banknotes were released. This was to celebrate 100 years since Nelson Mandela's birth. These notes have Mandela's face on the front. But on the back, instead of the Big Five animals, they show younger Mandela with scenes from his life. For example, the 10-rand note shows his birthplace in the Eastern Cape. The 200-rand note shows his statue at the Union Buildings. These special notes are used alongside the regular ones.

On May 3, 2023, the South African Reserve Bank announced a new series of banknotes. These will still have Nelson Mandela's image on the front. But the back will show families of the Big Five animals.

Banknote Series Overview

Here's a quick look at how the rand banknotes have changed over time.

1961 First Series

1966 Second Series

1978 Third Series

1992 Fourth Series ("Big Five")

2005 Fifth Series (More Languages)

2012 Sixth Series ("Nelson Mandela")

2018 Seventh Series ("Mandela Centenary")

2023 Eighth Series ("Big 5 Families")

How the Rand Compares to Other Money

See Also

In Spanish: Rand sudafricano para niños

• Financial rand
• Witwatersrand
• Krugerrand
• Coins of the South African rand
• South African pound
• Economy of South Africa

Note