The South Africanfinancial rand system was abolished with effect from March 13, 1995. The financial rand system was instituted on September 1, 1985 in an attempt to control the large outflows of capital from South Africa at that time. These outflows were largely the result of economic sanctions in response to Apartheid. The financial rand system provided for two exchange rates for the rand, one for current account transactions, and one for capital account transactions for non-residents. Investments made in South Africa by non-residents could only be sold for financial rand, and limitations were placed on the convertibility of financial rand into foreign currencies. Financial rand had the ISO 4217 currency code ZAL. The financial had a previous life, from January 1979 to February 1983. The 1985 crisis coincided with a default (then called a "standstill") on foreign debt by the Apartheid government.
Rand's total assets increased by $25,547 or 0.2% to $10,308,040 and its net assets increased by $47,360 or 0.5% to $10,105,644 at March 31, 2002, versus $10,282,493 and $10,058,284 at December 31, 2001, respectively.
Rand and Rand SBIC are subject to regulation as BDC's, and Rand SBIC is subject to regulation as an SBIC.
Rand and Rand SBIC is dependent for the selection, structuring, closing and monitoring of its investments on the diligence and skill of its two senior officers, Allen F. Grum and Daniel P. Penberthy.
A parallel currency, the financialrand, was used exclusively for the movement of nonresident capital during the 1980s and the early 1990s.
Financialrands developed out of currency-exchange controls instituted in the early 1960s, known as the "blocked rand." The financialrand was available only to foreigners for investment in South Africa and was created by the sale of nonresidents' assets in the country.
Financialrands invariably stood at a discount to commercial rands, but the size of the discount depended on South Africa's relative attraction as an investment destination.
Feeds |
Contact