South African pound
Encyclopedia
In 1825, an imperial order-in-council made sterling
coinage legal tender
in all the British colonies. At that time, the only British colony in Southern Africa was the Cape of Good Hope
Colony. As time went on, the British pound sterling
and its associated subsidiary coinage became the currency of every British territory in Southern Africa. The pound at that time was subdivided into 20 shilling
s, each of 12 pence
.
became the standard currency of the Cape of Good Hope colony in 1825 following an imperial order-in-council that was issued for the purpose of introducing the sterling coinage into all the British colonies. British coins then replaced the Dutch currency. Before a unified South Africa, many authorities issued coins and banknotes in their own pound, equivalent to sterling.
The Zuid-Afrikaansche Republiek
(ZAR), the Boer
state that in 1902 was to become Transvaal, issued notes from 1867 to 1902 and coins from 1892 to 1902. The gold coins were denominated in pond rather than pounds.
In 1920, the Treasury issued gold certificate notes. The following year, the South African Reserve Bank
was established as the sole note issuing authority. Coins were issued from 1923. The South African pound remained equal to the pound sterling throughout its existence, except for a short period following the abandonment of the gold standard in the United Kingdom
in 1931. When the United Kingdom
abandoned the gold standard
in September 1931, Canada
quickly followed suit because it had been under exactly the same pressure as the United Kingdom
. The contraction of the money supply in the USA had been causing large amounts of gold bullion to flow west across the Atlantic Ocean
, and south into the United States. The situation in South Africa
was different, because gold exportation to London
was a major business. According to Jan Smuts
in his biography, the Nationalists specifically wanted to make a point of not automatically following suit with the United Kingdom, and they perceived that they were in a strong position to do so. For the United Kingdom
and Canada
, an outflow of gold was seen as a flight of gold, whereas for South Africa
the same was seen as a profitable enterprise. The effect of South Africa
's continuing adherence to the gold standard
did not however turn out as Hertzog
might have hoped. The South African pound rose dramatically in value against the pound sterling
, and this virtually crippled South Africa's gold export industry overnight. By 1933, Hertzog
abandoned the gold standard
and the South African pound returned to parity with the pound sterling. The relief was felt almost immediately.
The South African pound
was replaced by the rand
in 1961 at a rate of 2 rand = 1 pound. That rate continued until the Sterling devaluation in 1967 when South Africa did not follow suit.
The Union of South Africa issued coins from 1923, in denominations of ¼, ½, 1, 3 and 6 pence, 1, 2 (initially denominated as a florin) and 2½ shillings, ½ and 1 sovereign. The coins were the same weights as the corresponding British coins but the silver coins (3 pence up to 2½ shillings) were struck in .800 fineness silver. Gold coins were struck until 1932.
In 1947, 5 shilling coins were introduced, with occasional commemorative variants. In 1951, the silver coinage switched to .500 fineness. Gold bullion ½ and 1 pound coins were issued from 1952 in the same specifications as the ½ and 1 sovereign.
All the coins had the British monarch on the observe, with the titles in Latin
, while the reverse had the denomination and "South Africa" written in English
and Afrikaans
.
issued a 1 pound note in 1835 and a 20 pound note in 1834. Between 1869 and 1872, the ZAR in Transvaal issued notes for 6 pence, 1, 2½, 5 and 10 shillings, 1, 5 and 10 pond. The National Bank of the ZAR issued 1 pond notes between 1892 and 1893. During the Second Boer War
, government notes were issued in denominations of 1, 5, 10, 20, 50 and 100 pond.
In 1920, Treasury gold certificate notes were issued in denominations of 1, 5, 100, 1000 and 10,000 pounds. From 1921, the South African Reserve Bank
took over the issuance of paper money, introducing notes for 10 shillings, 1, 5, 20 and 100 pounds. 20 pound notes were last issued in 1933, with 10 pound notes added in 1943.
All banknotes were bilingual in English and Afrikaans. From 1948, two variants of each note were issued, one with English written first and the other with Afrikaans written first.
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
coinage legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
in all the British colonies. At that time, the only British colony in Southern Africa was the Cape of Good Hope
Cape of Good Hope
The Cape of Good Hope is a rocky headland on the Atlantic coast of the Cape Peninsula, South Africa.There is a misconception that the Cape of Good Hope is the southern tip of Africa, because it was once believed to be the dividing point between the Atlantic and Indian Oceans. In fact, the...
Colony. As time went on, the British pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
and its associated subsidiary coinage became the currency of every British territory in Southern Africa. The pound at that time was subdivided into 20 shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s, each of 12 pence
Penny
A penny is a coin or a type of currency used in several English-speaking countries. It is often the smallest denomination within a currency system.-Etymology:...
.
History
The pound sterlingPound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
became the standard currency of the Cape of Good Hope colony in 1825 following an imperial order-in-council that was issued for the purpose of introducing the sterling coinage into all the British colonies. British coins then replaced the Dutch currency. Before a unified South Africa, many authorities issued coins and banknotes in their own pound, equivalent to sterling.
The Zuid-Afrikaansche Republiek
South African Republic
The South African Republic , often informally known as the Transvaal Republic, was an independent Boer-ruled country in Southern Africa during the second half of the 19th century. Not to be confused with the present-day Republic of South Africa, it occupied the area later known as the South African...
(ZAR), the Boer
Boer
Boer is the Dutch and Afrikaans word for farmer, which came to denote the descendants of the Dutch-speaking settlers of the eastern Cape frontier in Southern Africa during the 18th century, as well as those who left the Cape Colony during the 19th century to settle in the Orange Free State,...
state that in 1902 was to become Transvaal, issued notes from 1867 to 1902 and coins from 1892 to 1902. The gold coins were denominated in pond rather than pounds.
In 1920, the Treasury issued gold certificate notes. The following year, the South African Reserve Bank
South African Reserve Bank
The South African Reserve Bank is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920," as a direct result of the abnormal monetary and financial conditions which World War I had brought...
was established as the sole note issuing authority. Coins were issued from 1923. The South African pound remained equal to the pound sterling throughout its existence, except for a short period following the abandonment of the gold standard in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
in 1931. When the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
abandoned the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
in September 1931, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
quickly followed suit because it had been under exactly the same pressure as the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. The contraction of the money supply in the USA had been causing large amounts of gold bullion to flow west across the Atlantic Ocean
Atlantic Ocean
The Atlantic Ocean is the second-largest of the world's oceanic divisions. With a total area of about , it covers approximately 20% of the Earth's surface and about 26% of its water surface area...
, and south into the United States. The situation in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
was different, because gold exportation to London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
was a major business. According to Jan Smuts
Jan Smuts
Jan Christiaan Smuts, OM, CH, ED, KC, FRS, PC was a prominent South African and British Commonwealth statesman, military leader and philosopher. In addition to holding various cabinet posts, he served as Prime Minister of the Union of South Africa from 1919 until 1924 and from 1939 until 1948...
in his biography, the Nationalists specifically wanted to make a point of not automatically following suit with the United Kingdom, and they perceived that they were in a strong position to do so. For the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, an outflow of gold was seen as a flight of gold, whereas for South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
the same was seen as a profitable enterprise. The effect of South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
's continuing adherence to the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
did not however turn out as Hertzog
James Barry Munnik Hertzog
James Barry Munnik Hertzog, better known as J. B. M. Hertzog was a Boer general during the second Anglo-Boer War who later went on to become Prime Minister of the Union of South Africa from 1924 to 1939...
might have hoped. The South African pound rose dramatically in value against the pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
, and this virtually crippled South Africa's gold export industry overnight. By 1933, Hertzog
James Barry Munnik Hertzog
James Barry Munnik Hertzog, better known as J. B. M. Hertzog was a Boer general during the second Anglo-Boer War who later went on to become Prime Minister of the Union of South Africa from 1924 to 1939...
abandoned the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
and the South African pound returned to parity with the pound sterling. The relief was felt almost immediately.
The South African pound
South African pound
In 1825, an imperial order-in-council made sterling coinage legal tender in all the British colonies. At that time, the only British colony in Southern Africa was the Cape of Good Hope Colony. As time went on, the British pound sterling and its associated subsidiary coinage became the currency of...
was replaced by the rand
South African rand
The rand is the currency of South Africa. It 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 has the symbol "R" and is subdivided into 100 cents, symbol "c"...
in 1961 at a rate of 2 rand = 1 pound. That rate continued until the Sterling devaluation in 1967 when South Africa did not follow suit.
Coins
In 1892, the ZAR introduced coins in denominations of 1, 3 and 6 pence, 1, 2, 2½ and 5 shillings, ½ and 1 pond. The last of these coins were issued in 1900, except for siege 1 pond coins issued in 1902.The Union of South Africa issued coins from 1923, in denominations of ¼, ½, 1, 3 and 6 pence, 1, 2 (initially denominated as a florin) and 2½ shillings, ½ and 1 sovereign. The coins were the same weights as the corresponding British coins but the silver coins (3 pence up to 2½ shillings) were struck in .800 fineness silver. Gold coins were struck until 1932.
In 1947, 5 shilling coins were introduced, with occasional commemorative variants. In 1951, the silver coinage switched to .500 fineness. Gold bullion ½ and 1 pound coins were issued from 1952 in the same specifications as the ½ and 1 sovereign.
All the coins had the British monarch on the observe, with the titles in Latin
Latin
Latin is an Italic language originally spoken in Latium and Ancient Rome. It, along with most European languages, is a descendant of the ancient Proto-Indo-European language. Although it is considered a dead language, a number of scholars and members of the Christian clergy speak it fluently, and...
, while the reverse had the denomination and "South Africa" written in English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
and Afrikaans
Afrikaans
Afrikaans is a West Germanic language, spoken natively in South Africa and Namibia. It is a daughter language of Dutch, originating in its 17th century dialects, collectively referred to as Cape Dutch .Afrikaans is a daughter language of Dutch; see , , , , , .Afrikaans was historically called Cape...
.
Banknotes
The government of the Cape of Good HopeCape of Good Hope
The Cape of Good Hope is a rocky headland on the Atlantic coast of the Cape Peninsula, South Africa.There is a misconception that the Cape of Good Hope is the southern tip of Africa, because it was once believed to be the dividing point between the Atlantic and Indian Oceans. In fact, the...
issued a 1 pound note in 1835 and a 20 pound note in 1834. Between 1869 and 1872, the ZAR in Transvaal issued notes for 6 pence, 1, 2½, 5 and 10 shillings, 1, 5 and 10 pond. The National Bank of the ZAR issued 1 pond notes between 1892 and 1893. During the Second Boer War
Second Boer War
The Second Boer War was fought from 11 October 1899 until 31 May 1902 between the British Empire and the Afrikaans-speaking Dutch settlers of two independent Boer republics, the South African Republic and the Orange Free State...
, government notes were issued in denominations of 1, 5, 10, 20, 50 and 100 pond.
In 1920, Treasury gold certificate notes were issued in denominations of 1, 5, 100, 1000 and 10,000 pounds. From 1921, the South African Reserve Bank
South African Reserve Bank
The South African Reserve Bank is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920," as a direct result of the abnormal monetary and financial conditions which World War I had brought...
took over the issuance of paper money, introducing notes for 10 shillings, 1, 5, 20 and 100 pounds. 20 pound notes were last issued in 1933, with 10 pound notes added in 1943.
All banknotes were bilingual in English and Afrikaans. From 1948, two variants of each note were issued, one with English written first and the other with Afrikaans written first.