African currency was originally formed from basic items, materials, animals and even people available in the locality to create a medium of exchange. This started to change from the seventeenth century onwards (though there is still some slavery), as European colonial powers introduced their own monetary systems into the countries they administered. As African countries achieved independence through the twentieth century, some retained the new denominations that had been introduced, though others renamed for various reasons. Today inflation often creates a demand for more stable (but forbidden) foreign currency, while in rural areas the original bartering system is still in widespread usage. A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system. ...

History

In pre-colonial times African currency included shells, ingots, arrowheads, iron, human beings, salt, camels, cattle, goats, blankets, axes, beads, and many others. In the early 1800s a slave could be bought in West Africa with manilla currency; multiples of C-shaped rings of bronze or other metal that could be strung on a staff. Slaves could also be bought for salt or for any number of exchangeable items with a 'store of value'. Dowry or bride-price items were usually of diverse nature: cows, blankets, clay pots, and so on. Coins were used in Northern and Eastern Africa from Egyptian times onwards due to ongoing trade contact with Europe and Asia. Manilla rings or Manilla currency were C-shaped partial rings designed to be slotted onto a stick for carrying purposes. ... To act as a store of value, a commodity, a form of money or financial capital must be able to be reliably saved, stored, and retrieved - and be predictably useful when it is so retrieved. ... A dowry (also known as trousseau) is a gift of money or valuables given by the brides family to the grooms at the time of their marriage. ...

During Colonial times (roughly from 1680 to 1990) the respective colonial powers introduced their own currencies to their colonies or produced local versions of their currencies. Examples include the Somali shilling; the Italian East African lira; and the African franc (in Francophone countries). The Somali shilling (shilin soomaali) is the currency used in the African nation of Somalia. ... The lira was the currency of Italian East Africa between ca. ...

Many post-colonial governments have retained the name and notional value unit system of their prior colonial era currency. For example the West African pound was replaced by the Nigerian pound which is still divided into shillings. A different trend is seen when the predominant foreign power relationship changes, causing a change in the currency: the East African Rupee (from long-term trade with Arabia and India) was replaced by the East Africa shilling after the British become the predominant power in the region. Other countries threw off the dominant currency of a neighbour; the Botswana pula replaced the South African rand in Botswana in 1976. Some countries have not changed their currency despite being post-colonial, for example Uganda retains the Uganda shilling. The West African Pound is a Pound form of currency that was used in several countries in West Africa. ... The pound was the currency of Nigeria between 1907 and 1973. ... ISO 4217 Code BWP User(s) Botswana Inflation 10. ... ISO 4217 Code ZAR User(s) Common Monetary Area: Lesotho, Namibia, South Africa, and Swaziland Inflation 5. ...

Many African countries change their currency's appearance when a new government takes power (often the new head of state will appear on bank notes), though the notional value remains the same. Also, in many African currencies there is such rampant inflation that re-valuing must take place every so often (viz. the Zimbabwe dollar). There is a thriving street trade by unlicensed street traders in US dollars or other stable non-African currency, which are seen as a hedge against local inflation. The exchange rate is grossly more favourable to the seller of the foreign currency than is the official bank rate, and is usually labelled a crime. The United States dollar is the official currency of the United States. ...

In many rural areas there is still a strong bartering culture, the exchanged items being of more immediate value than official currency (you can eat a chicken but not a coin). Even where currency is used, haggling over prices is very common.

There is a planned West African Monetary zone among Anglophone African countries planned for implementation in 2009.

See also

• South African rand

ISO 4217 Code ZAR User(s) Common Monetary Area: Lesotho, Namibia, South Africa, and Swaziland Inflation 5. ...

External links

• US Federal Reserve Bank historical exchange rate data
• Track your South African Currency Online