What Currency Does South Africa Use?

What is the Currency of South Africa?

South Africa uses the South African Rand, known by its code ZAR and symbol R.

It’s the currency you’ll see across the entire economy, and it also plays a broader role in the region through the Common Monetary Area.

For traders, the rand matters because it’s one of the most actively traded EM currencies and is heavily influenced by political shifts, commodity prices, especially gold, and South Africa’s economic conditions.

South Africa Currency Name, Code & Symbol

The name of the South African currency came from the Witwatersrand, the ridge where Johannesburg’s major gold deposits were found. You’ll see the South African Rand represented in 3 main ways in the market:

• Currency Name: South African Rand

• Symbol: R

• Currency code: ZAR, short for Zuid-Afrikaanse Rand

Its regional relevance stems from the fact that the rand also circulates in Namibia, Lesotho, and Eswatini, all of which maintain a 1:1 peg to the ZAR within the Common Monetary Area.

History of the South African Currency

Before the rand, South Africa operated under the British system of pounds, shillings, and pence.

It had been the country’s money structure since the 1800s, but by the mid-1900s, it no longer reflected South Africa’s political direction.

The shift to a new South African currency was part of a big move to step away from British influence and define itself as a distinct national identity.

Introduction of the South African Rand (1961)

The South African Rand was introduced on 14 February 1961, replacing the pound at a rate of 2 rand for £1.

It came at the same time South Africa became a republic and left the Commonwealth, making the new currency a clear break from the old system.

In its early years, the ZAR was pegged to the US dollar, so it started off relatively stable.

Post-Apartheid Changes

After apartheid, the rand went through a complete visual overhaul. Colonial figures were removed from banknotes and replaced with South Africa’s wildlife, and in 2012, the well-known Nelson Mandela series was released.

Krugerrands (Gold Coins)

Krugerrands were first minted in 1967 to support South Africa’s gold industry. Although they are technically legal tender, they don’t have a printed rand value. Instead, their price is tied entirely to the global gold market.

Over time, Krugerrands became one of the most traded gold coins in the world.

How Does the South African Money System Work?

South Africa’s currency is straightforward, with both banknotes and coins used in everyday transactions. The designs carry a lot of cultural weight, which reflects the country’s history, wildlife, and political milestones.

Banknote Denominations

Rand banknotes come in five main values:

• R10: green

• R20: brown

• R50: red

• R100: blue

• R200: orange

Each note features one of the Big Five animals alongside an image of Nelson Mandela.

Coin Denominations

Coins are issued in both cent and rand values:

• Cents: 1c, 2c, 5c, 10c, 20c, 50c

• Rand coins: R1, R2, R5

Lower-value cent coins (1c–5c) still exist but they rarely appear in circulation due to inflation and low purchasing power.

Cash payments are often rounded to the nearest 10 cents.

Coins, especially the R1–R5 range, are used for smaller purchases, transport, and quick payments.

Rand vs. Dollar Currencies

The USD/ZAR pair is actually known for its sharp moves, and a lot of that comes down to how sensitive the rand is to global events. The currency has experienced long periods of depreciation, shaped by everything from political shifts at home to major shocks in international markets.

Some of the biggest moments that pushed the rand lower include:

• In 2001, when global uncertainty sent investors toward safer currencies

• The 2008 financial crisis, which hit most market currencies, including the ZAR

• The COVID-19 period, when the rand dropped past R17 per dollar

One constant in the rand’s story is its link to commodities, especially gold. South Africa has long been one of the world’s significant gold exporters.

The Role of the South African Reserve Bank (SARB)

The South African Reserve Bank is the authority behind the rand. It issues the country’s banknotes and coins, manages monetary policy, and steps in when needed to keep prices stable.

Although it has private shareholders, its mandate is public: to protect the value of the currency and support a healthy financial system. Its decisions, especially around interest rates and inflation, often show up quickly in how the ZAR trades.

Major Historical Events That Moved the Rand

The rand has been shaped by several major global and domestic shocks over the years. In the early 2000s, the currency took a sharp hit after the September 11 attacks, sliding to around R13 per US dollar as global risk sentiment collapsed.

A few years later, the 2007–2008 financial crisis triggered another wave of selling, with investors pulling out of emerging markets and pushing the rand down more than 35% in a single year.

Political shifts at home have also played a role. The transition out of apartheid and changes in leadership influenced investor confidence and, in turn, the value of the ZAR.

More recently, the COVID-19 pandemic sent the rand back above R17 per dollar as global markets reacted to lockdowns and economic stress.

Conclusion

The South African Rand is a currency shaped by history, politics, and the global commodities cycle, and all of that shows up in how it trades today. Once you understand the basics, you start to see why ZAR behaves the way it does on the charts.

For anyone watching the USD/ZAR currency, having this background makes the price action feel less random. The rand moves with sentiment, with South Africa’s internal shifts, and with the broader performance of emerging markets.