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 |
| Trading Hours | CME Globex: 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 | |
| Minimum Price Fluctuation | $.000025 per South African rand increments ($12.50/contract). |
| Product Code | CME Globex: 6Z |
| CME ClearPort: RA | |
| Clearing: RA | |
| Listed Contracts | Thirteen consecutive calendar months plus two-deferred March quarterly cycle months |
| Settlement Method | Deliverable |
| 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). |
| Settlement Procedures | Physical Delivery – ZAR/USD Futures Settlement Procedures |
| Position Accountability | 6,000 contracts |
| Block Trade Eligibility | Yes. |
| Block Minimum | 50 Contracts |
| Exchange Rules | These contracts are listed with, and subject to, the rules and regulations of CME. |
| Source: CME Group | |
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 September 2015
Additional Info
Recent Posts on the South African Rand
- Rand climbs against dollar amid data noting inflation rose (6/18/2014)- The South African rand pushed ahead on Wednesday against the world's reserve currency after economic data indicated inflation rose at its fastest rate in nearly five years, according to Bloomberg.
- Rand dips against dollar after release of weaker data (6/2/2014)- The South African rand fell to month lows against the world's reserve currency on Monday after the country's official statistics office noted a bigger than expected trade deficit, according to Reuters.
- Rand surges amid national elections (5/8/2014)- The South African rand marked its top gains thus far this year against the world's reserve currency on Thursday amid confidence the ruling party will prevail in national elections, according to Bloomberg.