South Africa is an exciting destination for all types of travelers. Its stunning beaches, diverse wildlife, and world-class wine and cuisine draw millions of international visitors annually.
If you plan to travel to South Africa in the future, it helps to know a little about the country’s currency, the rand. Familiarizing yourself with the South African currency helps you budget effectively and plan for how to exchange your US dollars (USD) for rand.
Here’s what you should know about South Africa’s currency, including its basics, backstory, and tips for scoring the best exchange rate. We’ll also tell you how to send money to friends or family in South Africa.
Note: Before making travel plans, check the US Department of State website for the latest travel advisory information.
What is the currency in South Africa?
The native currency of South Africa is the South African rand, symbolized with “R.” For example, R25 would be 25 rand. The word “rand” originates from the Witwatersrand, the ridge on which Johannesburg stands. The ridge is also the country’s main source of gold.
Interestingly, the rand’s currency code is ZAR, derived from the Dutch word for South African—“Zuid-Afrikaanse.” The rand is divided into cents, with 100 cents equaling a single rand.
The South African Reserve Bank (SARB) manages all South African currency. The SARB issues rand banknotes in R10, R20, R50, R100, and R200 denominations. Coins come in denominations of 10 cents, 20 cents, 50 cents, R1, R2, and R5. You might also see some 1- and 2-cent coins during your travels. Although they’ve long been discontinued, they remain legal tender.
In 2012, the SARB released a version of banknotes featuring former President Nelson Mandela’s portrait. Subsequent releases have also featured depictions of the country’s iconic leader.
History of the South African rand
Money in South Africa has evolved significantly throughout history, reflecting the country’s journey from pre-colonial times through colonization and apartheid into its current democratic era.
| Era | Time period | Currency | Notes |
| Pre-colonization | Prior to the 1600s | Barter | Goods like cattle, beads, and agricultural products were used for trade |
| Dutch Colonization | 1652-1806 | Rixdollar, gulden (guilders), and skelling (shillings) | Introduced by the Dutch East India Company |
| British Colonization | 1806-1910 | British pounds, shillings, and pence | Replaced Dutch currencies |
| Union of South Africa
|
1910-1961 | South African pound | Pegged in price to the British pound |
| Apartheid | 1948-1994 | Rand | Replaced the pound after South Africa became a republic in 1961 at a rate of 2 rand to 1 pound |
| Post-Apartheid | 1994-present | Rand | Modernized banknotes and increased digital payments |
Another important historical development in the rand’s history is the establishment of the South African Common Monetary Area (CMA) in 1986. This group of countries peg their currencies to the rand at a rate of 1 to 1 and use the rand as legal tender.
The CMA is currently comprised of:
- South Africa
- Lesotho
- Namibia
- Eswatini (formerly Swaziland)
7 tips for exchanging US dollars for rand
Exchanging for South African money is straightforward once you are in the country. Remember these tips when exchanging USD for ZAR so you get a good exchange rate and find a reputable exchange provider.
1. Research and compare exchange rates
One of the keys to getting a better exchange rate is to research and compare rates across multiple services. As a free-floating currency, the rand’s value changes daily. Therefore, check with banks, exchange bureaus, and other currency conversion services for the current day’s rate.
Once you learn who offers the best rates for your USD-to-ZAR exchange, determine which money exchanger is best for you based on their fees, reliability, reviews, and other factors.
2. Notify your bank ahead of traveling
To ensure you can use your debit card and bank account freely in South Africa, notify your bank of your travel plans. Depending on your bank, you may be able to set a travel notification online or through your mobile banking app. If not, call the number on your debit or credit card.
This will help you use money in South Africa and transact without worrying about your bank account being frozen.
3. Avoid exchanging money at airports, hotels, and tourist areas
Airports and hotels are convenient locations to change money in South Africa, but they typically offer less-than-favorable exchange rates. You might exchange a small amount of currency at these locations to get you started but look to exchange larger sums of money somewhere else later.
Black-market money exchangers operate widely in tourist areas of South Africa (and many other countries). Avoid these illegal or unlicensed businesses that aim to take advantage of foreigners.
4. Consider commissions and fees
Currency exchange services may charge various fees. These include flat transaction fees, commissions, and international service charges. The amount you’ll pay in fees will directly affect which currency exchange service is best for you.
Catch hidden fees by asking your money exchanger to list their service fees. This should give you full transparency into the cost of exchanging for South Africa’s currency.
With Western Union, you’ll never be surprised by hidden fees when exchanging money. You can always estimate your fees before you convert currency using our price estimator.
5. Opt to be charged in the South African currency when withdrawing money from ATMs
ATMs can be a convenient way to exchange currency in South Africa. When withdrawing money, always choose to be charged in the local currency (in this case, rand) rather than your home currency.
Opting to pay in the South African currency provides a better exchange rate and helps avoid additional fees associated with dynamic currency conversion (DCC). DCC enables you to see the cost of a transaction in your home currency when making purchases abroad.
6. Exchange money in South Africa instead of the US
There are plenty of places to exchange money in South Africa between banks, ATMs, and foreign exchange bureaus. You might be tempted to get some of South Africa’s currency before you leave the US, but it’s better to wait until you arrive in South Africa. This allows you to search for better rates and lower fees.
7. Use reputable exchanges
When converting dollars for South African money, do your best to avoid unlicensed money exchangers. Instead, use only official banks or licensed exchange bureaus. Avoid informal or unlicensed money changers to ensure fair rates and protect yourself from potential scams.
When transacting online, find an exchange provider with the highest security standards, like data encryption and Payment Card Industry Data Security Standard (PCI DSS) compliance. You’ll find this with reputable money transfer services like Western Union.
One way to facilitate an exchange with Western Union is by sending a money transfer to yourself for pickup in South Africa. As you are never very far from one of Western Union’s many agent locations in South Africa, sending money in advance using our trusted service is convenient. Get started on either the Western Union® mobile app or online platform. Both adhere to strict security standards.
Using money in South Africa
Before you travel to South Africa, it’s a good idea to know what to expect when tipping, using other currencies in the country, and more. Here are some important things to know about using South African money.
Can you use US dollars in South Africa?
Most places in South Africa don’t accept US dollars. Even if you find a hotel, resort, or souvenir shop that does, you’ll still have to navigate the exchange rate to ZAR at the time of your transaction.
The rand is the only money in South Africa that’s accepted everywhere, so it’s best to always have some on you.
Tipping etiquette in South Africa
Tipping is customary in South Africa—10% is the standard, and higher tips are appreciated for quality service.
One area where tipping is different in South Africa than in other countries is at gas stations. When getting gas, attendants fill your tank, wipe your windows, and sometimes even check your tire pressure. Tipping attendants between R5 and R20 is considered customary.
While you may be able to tip on a credit or debit card, service workers prefer cash tips. Make sure to carry South African money wherever you travel so you can leave cash tips that workers can take home immediately.
Where to get South African rand near me?
Major banks, airports, exchange bureaus, and ATMs across the country offer South African currency. Just stay away from unlicensed money exchangers or black-market businesses that might scam you out of money.
Another option is to exchange for rand using a reputable service. With more than 100 agent locations throughout the country, Western Union is a go-to for currency exchanges in South Africa (and beyond). Find a location near you to get started.
FAQs
While the rand is South Africa’s official currency, you’ll typically want to wait until you arrive in South Africa to exchange for rand. Look for a money exchanger that’s reputable, has favorable rates, and offers low fees.
Yes, you can send money to someone in South Africa. With Western Union, you have the option to send money with the help of a local Western Union agent or digitally using the Western Union® mobile app or online platform.
Yes, you can use your credit card in South Africa. Remember that you will likely pay international credit card processing fees—and potentially other fees—when transacting using a foreign credit card.
Yes, so long as you let your bank know about your travel plans ahead of time, you should have no problem using your debit card in South Africa. You can use your debit card for purchases or to withdraw rand from a local ATM in South Africa.
Yes, someone in South Africa can send you money. The easiest way to send money is either in-person at a bank or financial service or online. Fortunately, Western Union offers both options to receive money from South Africa.
