Foreign Currency Translation
i. Foreign currency translation (discuss local and functional currency issues).
The South African Rand acts as the official currency and legal tender of South Africa. The symbol used both within and outside South Africa for the South African Rand is R.
Fact Table:
1. Currency Name: The South African Rand
2. Currency Code: ZAR
3. Currency Symbol: R
4. Central Bank: The South African Reserve Bank
On the interview with CNBC in 2014, the country’s president Jacob Zumba pointed out the effect of US dollar to the rand’s volatility. He said: “The dollar that is the key controlling currency in the world. Once the dollar has problems, many currencies are having problems…. the fact that we had the economy melting down is because of the dollar”.
Since becoming independent, South Africa has developed into a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors, a stock exchange that ranks among the ten largest in the world, and a modern infrastructure supporting an efficient distribution of goods
As The South African economy is resource-based, it tends to affect the exchange rate of the Rand when relevant commodity prices fluctuate. Shifts in the price of gold often affect the value of the Rand substantially due to the South Africa’s status as a gold-producing nation. South Africa also has an exceptionally high unemployment rate, with more than a quarter of the labor force out of work.
Economic Table:
5. Central Bank Interest Rate: 5.0%
6. Annual Inflation Rate: 5.6%
7. Annual GDP Growth Rate: +2.3%
8. Unemployment Rate: 25.5%
The South African Rand acts as the official currency and legal tender of South Africa. The symbol used both within and outside South Africa for the South African Rand is R.
Fact Table:
1. Currency Name: The South African Rand
2. Currency Code: ZAR
3. Currency Symbol: R
4. Central Bank: The South African Reserve Bank
On the interview with CNBC in 2014, the country’s president Jacob Zumba pointed out the effect of US dollar to the rand’s volatility. He said: “The dollar that is the key controlling currency in the world. Once the dollar has problems, many currencies are having problems…. the fact that we had the economy melting down is because of the dollar”.
Since becoming independent, South Africa has developed into a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors, a stock exchange that ranks among the ten largest in the world, and a modern infrastructure supporting an efficient distribution of goods
As The South African economy is resource-based, it tends to affect the exchange rate of the Rand when relevant commodity prices fluctuate. Shifts in the price of gold often affect the value of the Rand substantially due to the South Africa’s status as a gold-producing nation. South Africa also has an exceptionally high unemployment rate, with more than a quarter of the labor force out of work.
Economic Table:
5. Central Bank Interest Rate: 5.0%
6. Annual Inflation Rate: 5.6%
7. Annual GDP Growth Rate: +2.3%
8. Unemployment Rate: 25.5%