OFFICIAL
CURRENCY
South African
Rand (R) R1 = 100 cents
International symbol
- ZAR
CURRENCY
CONVERTIBILITY REGIME
A Dual
Exchnge Rate currency system was in operation, but was abolished
in April 1995. South Africa now has a single tier currency exchange
system. Restriction generally do not apply to inbound or outbound
transfer of funds by non-residents.
LATEST
EXCHANGE RATE
Rand (R)
per US$ 1 =7.93976 (March 2003)
NAME
OF CENTRAL BANK AND ITS RESPONSIBILITIES
SOUTH AFRICAN
RESERVE BANK
The South
African Reserve Bank was founded in 1920. Like all central banks,
its primary function is the control of money and credit. The
Reserve Bank's stock is held by about 750 private stockholders.
The Government achieves control through its right to appoint
6 of the 12 directors, including the governor and deputy governor.
The
responsibilities of the Reserve Bank are many, and include the
following:
- Formulating
and implementing monetary and exchange rate policies;
- Issue
of notes and coinage;
- Clearing
bank for the banking system, since prescribed levels of deposits
must be held with the Reserve Bank;
- The
operation of the Exchange Control mechanism;
- Bank
of re-discount and lender of last resort;
- Custodian
of national bullion and foreign exchange reserves;
- Selling
of gold bullion on international markets;
- Banker
and adviser to the government and quasi-government;
- Control
of banking institution by issue of regulations;
- Engage
in open market operations to regulate money supply interest
rates or foreign exchange rates;
- Representation
of South Africa with foreign governments, foreign financial
institutions and international banking organisations;
- Collection
of statistics and data from banking institutions.
A wholly owned
subsidiary of the Reserve Bank, the Corporation for Public Deposits
(foremerly known as the National Finance Corporation of South
Africa) acts as the interest-paying arm of the Reserve Bank.The
Corporation for Public Deposits accepts deposits from both public
and private sectors and invests these in government, municipal
or public corporation securities. The Corporation is not in competition
with the private banking sector. This is reflected in its lower
interest rate structure. It is a vehicle for assisting banks and
provides a vital link in the chain making up the money market.
