The pound rocketed on Wednesday, striking a new six-week high against the US dollar amidst renewed hopes for a UK-EU Brexit trade deal.
All about the EUR/ZAR exchange rate
Whether you’re planning on relocating to South Africa, already live there, or will be working in the nation and need to send your wages home, you’ll have to get to grips with the EUR/ZAR exchange rate.
Facts about the EUR/ZAR exchange rate
Long-term political instability in South Africa and a strengthening Eurozone economy have largely allowed the euro to gain versus the South African rand over the latter half of the past decade.
Don’t forget! These are interbank exchange rates.
- EUR/ZAR hit the best levels seen in the last ten years at the beginning of January 2016, when the pairing climbed to ZAR 18.43.
- The euro’s worst performance against the South African rand came at the beginning of January 2011, when EUR/ZAR slid to ZAR 8.7509.
Overview of the euro and South African rand
You’ll often find people in the currency world referring to the euro as the ‘common currency’ or the ‘shared currency’ because it’s used as legal tender in the nineteen member nations of the Eurozone.
The South African rand replaced the British Pound as the legal tender of South Africa and was introduced in February 1961. It takes its name from Witwatersrand (White Waters Ridge) – the place where Johannesburg was built and much of South Africa’s gold deposits were discovered.
GBP/USD exchange rate movement
Political and economic volatility in the UK and US can have a significant impact on the amount of USD you receive when sending GBP overseas.
Specific issues, like the UK’s Brexit negotiations with the European Union and the Federal Reserve’s attitude to interest rates have had a substantial impact on pound and US dollar exchange rates in recent years.
The rand is available in a combination of coins and notes. Coins come in denominations of R 5, R 2, and R 1, as well as 50 cents, 20 cents, 10 cents and 5 cents. Notes come in denominations of R 200, R 100, R 50, R 20 and R 10.
What causes the EUR/ZAR exchange rate to fluctuate?
The euro to South African rand exchange rate experiences volatility, in part, because the two currencies are viewed very differently by investors. The euro is (by and large) a stable currency that fluctuates within a comparatively narrow range. The South African rand, meanwhile, is more sensitive to commodity prices and general risk appetite. Shifts in the value of commodities specifically associated with South Africa (like gold) can have a notable impact on ZAR exchange rates.
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