South African Rand is at the moment one of the most valuable currency on the African continent. This currency has risen and fallen at various times.
Rand to Pound exchange has always served importantly to weigh the value of the rand. This is because the British pound is one of the strongest currencies in the world.
The British Pound, hiding under a good economic roof, is among the top five most valuable currencies in the world. This is in comparison to the South African Rand which is still extremely far in the scheme of currency value.
Rand To Pound: History
The exchange rate between these two currencies has a history dating back to 1961. In that year, the South African Pound died and in its place the Rand was born. This was in completing moves to free itself from British Control.
In its earliest times, the exchange rate between the two currencies stood at 2 Rand to a Pound. This meant that 10 shilling was worth a Rand.
Since from 1968, Rand has been able to stand her decent ground against the pound at 2 ZAR to 1 Pound. After this period however, the British currency has managed to keep getting the south African currency flat on her back.
The events in South Africa associated to Apartheid further weakened the grasp of ZAR over a more formidable Pound. In early 1980s, ZAR seemed to have her groove back when she caught the Pound at 2 to 1 pound exchange. This was however not to last as by mid 1980s, it has slumped to a continuous dismal fall, even when it gave signs of recovery by late 1980s.
1990s did not come with much prospects for the Rand against the Pound as a result of Apartheid getting to its climax. Even with the end of Apartheid, Rand still made a continuous fall until around 2001 when Rand to pound became 19.5R to 1 pound.
The years between 2001 and 2006 did not come with much promise as the Rand continued its rise and fall against the Pound.
Having a look between 2007 and 2016 Rand to Pound exchange, much fluctuations would be seen. This is mostly as relates to the rise and fall of the Rand, with a best performance of 10.23 exchange for 1 pound. This was recorded on 10th of December 2011.
Rand’s performance against the Pound between 2007 and 2016, recorded a most dismal show on 11th January 2016. On this day, ZAR slumped to 24.51 to 1 Pound.
Rand and Pound Exchange: Present
Although in most recent times, the British pound has lost much pound of blood as a result of the Brexit movement, it still runs better than the South African Rand (ZAR). This however is not to suggest that the Rand is having its best run considering the inflation that has hit the nation. More so, the British economy is responding fine.
As at 30th August, 2016, ZAR stands at 18.90 to 1 British pound. This is better than the 22.83 Rand to 1 Pound that ZAR recorded in the beginning of the year 2016. However, it is slightly limping to the 17.14 Rand to 1 Pound recorded on the 15th of August 2016. One of the worst run for the Rand in the year, 2016 is when it recorded an exchange of 23.18 against 1 Pound on the 18th of May 2016.
Future Of Pound and Rand
As it stands, both countries are running times of much political and financial uncertainties. However as history has clearly shown, the British Pound has always remained the taller of the two currencies. This may likely continue for a very long time to come.
It will not require a doomsday Prophet to see the long way to freedom ZAR will have to walk to have itself equal or even above the British pound.
This is most especially if one considers the current economic situations in both countries. As it stands, South Africa’s GDP is a mere 301 billion US Dollars. This lies in the distant shadows of the giant Britain’s over 3 trillion US Dollars.
Also, while Britain has its political issues, the political epilepsy in South Africa is more critical. There will be, from all recent indications, a change of government in South Africa.
While that may come easily, salvaging the economy of the country which has been brutalized by extreme political drama and corruption may not come easily. This as well will impact ZAR negatively in its race to outdo the Pound.
More critical for the Rand is that South African GDP is on a slow free fall. This is as against Britain’s Economy experiencing a slow rise amidst all uncertainties.