South Africa is considered to be one of the fastest-developing countries in the world, pulling on its abundant supply of natural resources. The first forms of currency in South African were the rixdollar and stiver denominations, which were introduced in 1782. Up until the 1860s, South African notes were drawn by hand. Introduced in 1961, the South African Rand was named after a water ridge, Witswatersrand, near Johannesburg. Today, speculators and investors frequently get involved with the Rand because it is consistently undervalued by 15-20% with frequent fluctuation.
|South African Rand Contract Specifications|
|Contract Size||500,000 South African rand|
|Contract Month Listings||Thirteen consecutive calendar months plus two-deferred March quarterly cycle months|
|Settlement Procedure||Daily ZAR/USD Settlement Procedure|
|Position Accountability Trigger Level||6,000 futures-equivalent contracts|
|Ticker Symbol||CME Globex Electronic Markets: 6Z
Open Outcry: RA
AON Code: UR
|Minimum Price Increment||$.000025 per South African rand increments ($12.50/contract).|
|Trading Hours||Open Outcry (RTH): 7:20am-2:00pm CT|
|Globex (ETH): Sundays: 5:00pm – 4:00pm CT next day.
Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT.
|CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm|
|Last Trade Date||9:16 a.m. Central Time (CT) on the second business day immediately preceding the third Wednesday of the contract month (usually Monday).|
|Block Trade Eligibility||Yes.|
|Block Minimum||50 Contracts|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CME.|
South African Rand Facts
South African Rand futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.
The South African Reserve Bank is responsible for setting monetary policy as it pertains to its currency. Thus, they try to maintain price stability and low inflation in order to help sustain economic development and the overall value of the South African Rand.
Source: South African Reserve Bank
Last updated May 2013
South African Rand News Articles
- Rand dips toward biggest weekly loss in five weeks (12/6/2013) - The South African rand was diving toward its largest weekly losses in five weeks against the world's reserve currency on Friday, according to Bloomberg.
- Rand drops after early session gains (9/10/2013) - The South African rand dove in value on Tuesday against the world's reserve currency for the first time in five trading sessions after the country released economic data noting its current-account chasm developed more than forecast during the second quarter of the year, Bloomberg reports.
- Rand marks early gains against the dollar (7/15/2013) - The South African rand achieved a second-straight day of gains against the world's reserve currency as a consequence of economic data released by China from the second quarter complying with estimates, according to Bloomberg.
- Rand marks 11 days of losses (5/23/2013) - The South African rand on Thursday notched an 11th consecutive trading session of losses, marking its longest bearish trend in a quarter century, Bloomberg reports.
- Rand endures seventh day of losses against dollar (5/17/2013) - The South African rand on Friday marked its seventh consecutive trading session of losses against the U.S. dollar, dropping to its lowest value in about four years against its rival, Bloomberg reports.
- Rand pinched by preference against South Africa, finance minister says (5/9/2013) - The South African rand has been performing poorly because of resistance against it and the monetary unit is weaker than it really should be, the nation's finance minister told Bloomberg news on Thursday. Having lost about 5.8 percent of its value thus far this year against the U.S. dollar, the South African rand is being pinched by... Read More.
- Rand climbs after release of strong manufacturing, mining data (3/14/2013) - Thursday saw the South African rand reverse four days of losses against the U.S. dollar after stronger economic data boosted the monetary unit, Bloomberg reports. The largest economy on the African continent saw strong manufacturing leading up to January and healthy generation in the mining industry since August 2012. South Africa's current account deficit is... Read More.
- Rand rises from 4 year depth against greenback (1/29/2013) - Tuesday saw the South African rand rise from its nearly four-year low against the U.S. dollar as sentiment grew about the currency’s losses being overdone, Bloomberg reports. After scraping its lowest value since the middle of April 2009 following a 2.4 percent dive on Monday, the monetary unit of the largest economy in the African continent... Read More.
- Rand climbs as central bank convenes (1/24/2013) - The South African rand advanced on Thursday against the U.S. dollar as the Reserve Bank of South Africa prepared to convene, Bloomberg reports. With a repo rate at 5 percent, policy makers could go either way. A Bloomberg survey of 21 economists revealed unanimous agreement that the rate will remain unchanged. But policy makers with... Read More.
- Rand begins bouncing back following rough week (1/14/2013) - Monday saw the South African rand gain in value on Monday after six consecutive days of losses were considered to be overdone, Bloomberg reports. The currency of the largest economy on the African continent dropped to its lowest value since early December 2012 after Fitch Ratings cut South Africa’s credit rating. The service cited developmental... Read More.