You might not hear much about the South African rand. This is logical as the South African rand isn’t as famous as its larger counterparts such as the US dollar and the British pound. Forex traders often include it in their trading strategies to take advantage its fluctuations.
This blog will give you some valuable insights into the South African currency and economy, which you can use to do your market research.
The South African Rand: Basics
The South African Rand, also known as the Southern African Common Monetary Area (SACMA), is the official money of South Africa, Namibia Lesotho & Eswatini. Rand is the Dutch and Afrikaans word for “ridge”. If you wonder what a ridge has to do with the rand, you probably don’t know that the largest deposits of gold in South Africa were found in a ridge upon which the city of Johannesburg was built.
In 1961, the South African Rand became official. For the next 25 years, South Africa’s currency suffered from the consequences of an economy tormented by high inflation figures and severe international economic sanctions. Even the suspension of forex was forced by the government in mid-1985.