How Much Is 1 Dollar In South African Rands?
Today’s foreign exchange rate conversion: 1 dollar = 21.47 South African Rand
Factors That Affect The Exchange Rate
The market forces of supply and demand determine South Africa’s fluctuating currency rate system. The South African rand’s currency rate is heavily impacted by large global market operations.
Like any other currency, the rand is impacted by the balance of payments, inflation, interest rate, and investor confidence. However, being a floating currency, its value is continually fluctuating.
China’s Steady Economy
The Rand is impacted by the political and economic stability of South Africa’s trade partners. China is the country to which South African exports most frequently. As a result, China’s political and economic environment has a significant impact on the South African Rand’s performance and value.
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Worldwide Uncertainty
Currency values may fluctuate often as a result of market uncertainty. Here are just a few instances of recent world events that have affected the rand:
An economic backlash resulted from a diplomatic disagreement between the US and Turkey in 2018. This has a significant impact on rand value. Within a month, it increased from R13.41 to R15.55.
Due to the taper tantrum, the rand fell from R8.91 to R10.37 during May and June 2013. When Ben Bernanke, the head of the Fed, unexpectedly announced that the US central bank was reducing the amount of money it invested in global markets that year, the rand lost almost a quarter of its value.
Cost Of Commodities
South Africa exports a lot of commodities. The country exports the most platinum worldwide. Its GDP for the year 2019 is $351.4 billion USD, with a GDP per person of $6,001.4.
A commodity currency is the rand. Because the price of raw materials has a direct influence on a commodity currency’s value, it is often referred to as a “commodity dollar” or “comdoll.”
Agriculture-related goods, metals, and energy supplies can have an impact on the value of commodity currencies. The value of the currency changes together with the price of the primary export of the nation.
