The South African Reserve Bank (SARB) has introduced the first major upgrade to South Africa's banknotes and coins in over a decade. These changes include enhanced security features, more vibrant colors, and new depictions of animals and plants, aligning with international best practices for combating counterfeit currency.
Key Changes to Banknotes
While the core features such as the portrait of Nelson Mandela and the depictions of the Big Five remain, there are several notable changes to the banknotes:
- Color Changes: The R20 banknote will be a more visible brown, the R50 banknote will be tinged with purple, and the R200 will be a more vibrant orange.
- Preamble to the Constitution: The addition of the preamble to the Constitution on the banknotes.
- South African Flag: The inclusion of the South African flag in miniature in the center threads.
- Family Scenes: The expansion of the Big Five pictures theme to incorporate family scenarios depicting both parents and offspring.
- Watermarks: Watermarks that also feature a picture of the Big Five animals that appear on the banknote.
There will also continue to be specific physical characteristics to help visually impaired people differentiate the banknotes from one another. The public can use the "look, feel and tilt" method to authenticate their currency. This includes seeing the Big Five watermark on both sides, tilting the banknote to reveal the word SARB and the denomination, and feeling the raised print on Madiba's face.
Additionally, Reserve Bank governor Lesetja Kganyago's signature will be visible, and every banknote will maintain its own unique serial number. SA's 11 official languages will also be represented on the various banknotes.
New Coin Designs
The coinage sees the most significant changes, with a theme of ‘Deep ecology’ that acknowledges the interconnectedness of living organisms as an integral part of the environment. The South African flag is on the front of the R1 coin. The new animal depictions on some of its coins include:
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- 10c: The Cape honey bee replaces the aloe.
- R5: The southern right whale, accompanied by SA's national fish, the galjoen, replaces the buffalo.
- R2: The springbok, previously featured on R1 coins, will now be on R2 coins, replacing the kudu.
- R1: The king protea flower.
- 20c: The bitter aloe.
- 50c: The Knysna turaco (loerie).
Additionally, the coin series has new landing patterns on the inside of the coin.
Timeline for Circulation
The upgraded banknotes and coins started being put into circulation this week with the expectation that most South Africans will come into contact with the full range of upgraded currency from June onwards. All previously issued circulation banknotes and coins can be used as a means of trade together with the upgraded banknotes and coin.
The South African Rand (ZAR)
The South African rand (sign: R; code: ZAR) is the official currency of South Africa. It is also legal tender in the Common Monetary Area member states of Namibia, Lesotho, and Eswatini, where these countries also have national currencies pegged with the rand at parity. The rand takes its name from the Witwatersrand, the ridge upon which Johannesburg is built and where most of South Africa's gold deposits were found.
The rand was introduced in 1961, replacing the South African pound at a rate of 2 rand to 1 pound. Its value has fluctuated significantly over the years due to various economic and political factors.
Here's a brief overview of the rand's exchange rate history:
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| Year | Exchange Rate (ZAR/USD) | Key Events |
|---|---|---|
| 1961 | 0.71 | Rand introduced at 2 ZAR = 1 GBP |
| 1982 | ~1.00 | Rand reaches parity with the US dollar |
| 1985 | ~2.40 | Rubicon speech by P. W. Botha |
| 1992 | ~3.00 | Uncertainty about the country's future |
| 2001 | ~14.00 | Sudden depreciation leading to investigation |
| 2004 | ~5.70 | Recovery after 2001 depreciation |
| 2016 | ~17.91 | All-time low exchange rate |
As of now, ZAR to USD is approximately 14.97 : 1. However, the South African currency is volatile. The exchange rates tend to change and they change drastically.
The banknotes were also seen as a window into the country, adding they should be able to tell the "South African story" in "many different ways".
The bank also uses a method called "look, feel and tilt" to establish that money is legitimate currency. South Africans will be able to see the Big Five watermark on both sides of the banknotes and when they tilt the banknote, they will see word SARB and denomination on each banknote. They will also be able to "feel" the raised print on Madiba's face.
The South African Reserve Bank (SARB) released the upgraded Mandela banknotes and fourth decimal coin series on 3 May 2023.
In general, banknotes are refreshed in intervals of six to eight years and coins in intervals of 20 to 30 years. In South Africa, the current Mandela banknote series was issued in 2012 and a commemorative series of banknotes was issued in 2018.
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