On this page, we will discuss the relationship between the American dollar (USD) and the South African rand (ZAR). We will talk about how the exchange rate between USD and ZAR is affected and why it is important to all of us.
The South African rand is the official method of payment in South Africa and is also used in a currency union called the Common Monetary Area (CMA). The CMA consists of South Africa, Namibia, Lesotho, and Swaziland, meaning that most of southern Africa use the ZAR.
Since the USD is the biggest reserve currency in the world used for international trades and payments, this creates a situation where not only one but four nations export most of their goods in USD converted from ZAR. As you might understand, this also creates a huge demand for converting USD to ZAR.
Another interesting and often overlooked connection between the ZAR and the USD is that all the countries in the CMA have their own currencies. The Namibian dollar is the currency of Namibia, and it was originally based on and inspired by the American dollar.
However, that is not the only relationship between the two currencies. We already know that the USD is the most influential currency in the world and that it has a relationship with every other currency on this planet. However, you might not be aware that the ZAR and GBP have a very close relationship as well. This means that whatever happens between the GBP and USD also affects the exchange rate of USD to ZAR.
A good example of this is when the United Kingdom voted to leave the European Union in the notorious Brexit vote in 2016. This had a huge impact on the world economy and it made the GBP plummet like never before, especially in relation to the USD. Due to the close connections we talked about earlier, this decision lead to the ZAR dropping a record-breaking 8% against the American dollar.
Convert USD to ZAR
We will now look closer at how to best convert dollar to rand. To convert or calculate the value of one currency into another, you need a currency converter. Traditionally, these tools were offered by banks and exchange offices but nowadays you can find the best currency converters online.
Here on BullMarketz.com, we offer one of the leading currency converters in the world and it is the perfect solution if you need to check what the exchange rate between the dollar and the rand is. In fact, it is a crucial tool for everyone that wants to buy or sell products in the two currencies, and also for people who are interested in investing their money in the dollar to rand exchange rate.
So for whatever reason you have to check the value of ZAR in USD, we have the currency converter you need.