ZAR - Definition

ISO 4217 code for the South African rand. It was introduced in 1961, replacing the South African pound when South Africa became fully independent from the United Kingdom. It was a very valuable currency for most of its early history, but mounting international pressure over apartheid and the uncertainty during reforms since then have greatly weakened it. It has been marked by fairly steady Depreciation since the mid-1980s. However, it is a regionally important currency, being used in Namibia and Zimbabwe as well as South Africa.

A rand was worth US $ 1.40 from the time of its inception in 1961 until 1982, when mounting political pressure combined with sanctions placed against the country because of apartheid started to erode its value. The currency broke above Parity with the dollar for the first time in March 1982, and Continued to trade between R 1–R 1.30 to the dollar until June 1984, when depreciation of the currency gained Momentum. By February 1985, it was trading at over R2 per dollar, and, in July that year all foreign exchange trading was suspended for 3 days to TRY to stop the Devaluation.

For example, one US dollar (USD) may equal seven South African rands (ZAR). This means if a person took one USD to South Africa and exchanged it, she would receive seven ZAR. If, however, South Africa decided to devalue its currency, one USD would purchase more ZAR, perhaps ten, because they would be cheaper.



Terms near "ZAR"

Zero Balance Account (ZBA)
Zero Basis Risk Swap (ZEBRA)
Zero Bound
Zero Cost Collar
Zero Coupon
Zero Coupon Bond
Zero Coupon Inflation Swap
Zero lot line
Zero Minus Tick
Zero Plus Tick
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