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Rob Dempster
'Allo 'Allo Gardens! (AAG) Howick (uMngeni) AAG Blog South African Rand ZAR Zuid-Afrikaanse Rand 15 February 2025 |
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The South African Rand (ZAR - from the Dutch 'zuid-afrikaanse rand') has been the currency of South Africa since 1961. Before that it was the Pound. My wife Edith and I got married in 1971. We also started work as teachers during that year, and my monthly salary was R240. Because she was a woman, Edith earned R220 per month. No one we knew was complaining, and after working for two years, we flew to the United Kingdom (UK) for a six week Christmas holiday. During that holiday we stayed in BnB's and Hotels. The exchange rate at that time was about R1.65 to the British Pound. We travelled with US$ Travellers Cheques.
The next time Edith and I got to fly to the UK for a holiday was when I retired. That trip, like the first, was a huge success. There was however a big difference this time around. We did not stay in hotels, we stayed with relatives and camped while exploring the country side. It was now 2010 and we were paying R8.00 for a British Pound. Despite that, we still had a great time.
We have not been back since. Right now we would pay R23.12 for a British Pound, and R18.37 for a United States Dollar.
Given that my traveling days to foreign climes are now over, the ZAR exchange rate within that context is no longer a concern. However it is not that simple. The ZAR exchange rate is in my financial toolbox as a measure of how well the country is faring. Currently it is not a pretty picture. It is also hugely disappointing, as I would have hoped that the huge change that occurred during 1994, would have seen the country prosper, as the new dispensation (ANC Governmaent) worked tirelessly to improve the lot of black South Africans.
Instead, unemployment is at record levels, and the country's infrastructure: Rail, Roads, Electricity Supply, Water Reticulation (fresh and waste) are in a state of collapse. Not exactly what the African Nationalist Congress government had promised, and continued to promise, would be delivered. Also not what I had expected, and a huge disappointment.
Now South Africa has a Government of National Unity (GNU), and there is a new hope, hope that this time we will get it right.
Finally I should mention that I was tempted to produce a graph similar to the one included here for the ZAR/US$ exchange rate history, a graph that shows the Zimbabwean/US$ exchange rate history. I started looking at the data, and then stepped back. What has happened there is simply mind boggling. Once again, not what the people were promised!
Thousands of Rand are needed to buy a bicycle.
Some Links
- Measuring Worth - Exchange Rates
- South African Rand (ZAR): History of the Currency
- Rand/US$ Exchange Rate Graph data in a text file
