South Africa Economic Information
Central Bank: South African Reserve Bank
Currency: South African rand (ZAR or R)
Rich in mineral resources, South Africa is the world's largest producer and exporter of gold and platinum. While enjoying the largest and most developed economy on the African continent, South Africa also deals with significantly outdated infrastructure and poverty issues. A popular commodity currency for speculators, the South African rand can be extremely volatile due to fluctuation in commodity prices, inflation and political issues.
Key industries:
Mining (world's largest producer of platinum, gold, chromium), automobile assembly, metalworking, machinery, textiles, iron and steel, chemicals, fertilizer, foodstuffs, commercial ship repair.
Agricultural products:
Corn, wheat, sugarcane, fruits, vegetables, beef, poultry, mutton, wool, dairy products.
Export commodities:
Gold, diamonds, platinum, other metals and minerals, machinery and equipment.
Import commodities:
Machinery and equipment, chemicals, petroleum products, scientific instruments, foodstuffs.
Historical foreign currency exchange rates
 Downward Trend |
 Upward Trend |
| Source: These exchange rates are interbank rates as published by Interactive Data as of 1/4/2009. These rates were not available to retail customers and were not the rates offered by EverBank®. Past performance does not guarantee future results. |
A few factors to consider when evaluating the South African rand:
Reasons to consider
- About 60% of South Africa's exports are precious metals and minerals. South Africa contributes 10% of the world's gold and 80% of its platinum.
- A global commodity boom has propelled the prices of platinum and gold to record highs.
- Real GDP is expected to accelerate in 2009 due to preparation for the 2010 football World Cup.
Risk factors to consider
- In early 2008, the South African rand faced double digit depreciation against the U.S. dollar.
- A weakening in the global markets could drive foreign investors to drop riskier currencies like the South African rand. This would have significant impact on South Africa's economy since its account deficit, 8.1% of GDP in early 2008, is funded primarily by equity portfolio inflows.
- Outdated infrastructure is contributing to a country-wide power shortage, which disrupts mining operations and has triggered a loss of foreign investor confidence.
- The current president will step down in 2009 and his presumed successor will go on trial in August, 2008, accused of fraud, money laundering, racketeering and tax evasion.
- Healthcare costs are starting to consume a large percentage of South Africa’s budget due to a growing AIDs epidemic. Approximately 5 million South Africans are infected with HIV.
How EverBank can help with your South African rand needs?
WorldCurrencySM CDs (Single-currency CDs): Earn interest rates at local rates in the currency of your choice.
WorldCurrency Index CDs (Multi-currency CDs): Open a single CD comprised of multiple currencies, each designed to focus on a specific regional strength, and/or geopolitical and economic development. This currency is available in the following Index CD(s):
DollarBull® CDs: Open a single currency CD in reverse—you benefit if the U.S. dollar appreciates against a chosen currency.
WorldCurrency Access Deposit Account: Open a transactional money market account in the currency of your choice.
I'm interested in opening a WorldCurrencySM account, what is my next step?
Please note: Not all investments are right for all investors. You should conduct your own research and/or consult with an investment advisor before making any investment.
- Before opening a WorldCurrency account, we recommend reading the following pages:
- If you are ready to open your WorldCurrency account, apply online or call 800.926.4922 for more information.
- For your protection, we require that you sign and mail your application along with a deposit.
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