The South African Rand, represented by the currency code ZAR and the symbol R, is the official currency of South Africa. The South African Reserve Bank (SARB) issues and manages the South African Rand.
The South African Rand was introduced on 14 February 1961, coinciding with the establishment of the Republic of South Africa, replacing the South African pound. The name 'Rand' was derived from 'Witwatersrand', an area in Johannesburg known for its gold deposits.
Exchange rate regime:Floating
South Africa's Monetary Policy
The South African Reserve Bank (SARB) is the Central Bank of South Africa. Its objective is to maintain price stability. The target range of the Consumer Price Index is between 3 and 6%.
Price setting method: the floating exchange rate is described as «supervised». The SARB, therefore, reserves the right to intervene on the spot market to influence the value of the ZAR, mainly against the USD.
Key Features of ZAR
The South African Rand is subdivided into 100 cents. Coins are issued in denominations of 5c, 10c, 20c, 50c (cents), R1, R2, and R5 (rand), while banknotes come in denominations of R10, R20, R50, R100, and R200.
South African Rand banknotes feature images of the "Big Five" animals (elephant, lion, leopard, rhino, and buffalo) on one side and a portrait of Nelson Mandela, the country's first black President, on the other.
South Africa's economy and the value of the Rand are influenced by a variety of factors, including global commodity prices, political stability, and economic policy decisions. Therefore, the Rand is often seen as a barometer for risk sentiment towards emerging markets.
Economists and financial experts closely watch these factors and the SARB's policy decisions. The ongoing challenges of economic inequality, unemployment, and fiscal deficits are key points of discussion among experts.
The SARB is responsible for the regulation of the South African Rand. It oversees monetary policy, manages foreign exchange reserves, ensures the stability of the financial system, and regulates banks in South Africa.
The SARB implements stringent measures to prevent financial crimes, including robust Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations that financial institutions must comply with.
Key considerations to bear in mind
Payment instructions should contain the beneficiary's IBAN, name, and address.
Payment Processing Time
The time taken for a payment to reach the recipient's bank account can vary. Domestic transfers within New Zealand are typically processed quickly, while international transfers may take a few business days. Consider the processing time when planning your payment to ensure timely delivery. The iBanFirst Payment Tracker can help you track those payments, and ensure a smooth and efficient payment experience.
Fees and Charges
Banks and financial institutions may apply fees and charges when processing international payments. These fees can vary, so it is advisable to check with your bank to understand the charges associated with your transaction. Check out iBanFirst’s Savings Calculator to estimate how much you could save on your next international payment.
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