Forex Rates in South Africa – Check Live Foreign Exchange Rates

Forex rate, also known as Foreign exchange rate, is the rate at which one currency will be exchanged for another currency. Forex rates are regarded as the value of one country’s currency in relation to another currency. For example, how many South African rands does it take to buy one US Dollar? As of 1 August 2020, the exchange rate is 17,07, meaning it takes R 17,07 to buy 1 USD. Forex rates don’t stay the same. Some days the rand is R16 against the American Dollar.

What Determines the Forex Rates?

Forex exchange rates are determined in the foreign exchange market. The market open 24 hours a day in different parts of the world, from 5 p.m. EST on Sunday until 4 p.m. EST on Friday. Currencies are traded 24 hours, 5 days a week except weekends. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. These are two most popular types of forex rates in South Africa. We also have other types of exchange rates and they are: Free Floating, Restricted Currencies, Currency Peg, Onshore, Offshore and Quotation exchange rates.

Example of How Exchange Rates Work

Steve is travelling to New York from his home in South Africa, Sandton. Steve wants to make sure that he has 10 000 rand’s of worth of US Dollars when he gets to America. He then visits the local currency exchange shop or use forex rates FNB or forex rates Standard Bank tool and notices that the Currency Exchange Rate 1 Rand = $0.05859 Dollar. Meaning that if he exchanges R10 000, he will get $585.86 in return.

The equitation is rand ÷ exchange rate = dollar

-or-

R10 000 ÷ 0.05859 = $585.86

This is how the forex rates work. So a forex rate today won’t be the same as tomorrow when someone decides to visit New York hoping to exchange 10 000 rand.

With the help of forex exchange rate tools, you can see how much it will cost you to buy a foreign currency.

How Exchange Rates Affect You

Using the same example above, if Steve is travelling to another country that uses a difference currency, he must plan for exchange rate values. When the South African rand is strong, you can buy more U.S. dollars so that you can have enough money when you visit America. If the rand is weak, it will cost you a lot of money to buy the U.S. dollar. You can’t buy as much foreign currency as you wished. This is one of the ways exchange rates affect you.

You can search on Google to find the exchange rate of the South African rand to foreign exchange for any given day. As mentioned above, you can use forex rates ABSA, forex rates Nedbank, forex rates FNB or forex rates Standard Bank tools to check the forex rates South Africa.

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