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The Rand and the Monetary Systems of Botswana, Lesotho, and Swaziland

Published online by Cambridge University Press:  11 November 2008

Francis d'A. Collings
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Extract

Botswana, Lesotho, and Swaziland are among very few countries which, in recent times, have for an extended period and without formal agreement used another national currency as their domestic circulating medium and legal tender. After many years of being de facto part of a larger monetary area using the South African currency, in 1972 the three smaller countries jointly initiated negotiations with Pretoria which led to the creation of an officially recognised Rand Monetary Area in December 1974. Thereafter they chose different arrangemènts which span the spectrum between continued integration with and separation from the monetary system of South Africa. The experiences of these countries, while of interest in themselves, may also be relevant to other governments with dependent currency systems which face similar options.

Type
Articles
Information
The Journal of Modern African Studies , Volume 16 , Issue 1 , March 1978 , pp. 97 - 121
Copyright
Copyright © Cambridge University Press 1978

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References

page 98 note 1 Liberia and Panama, although using the U.S. dollar, had legally established separate local currency units (the dollar and the balboa, respectively), for which they declared formal par values when they became members of the Fund.

page 99 note 1 Botswana, Lesotho, South Africa, and Swaziland were all ‘scheduled territories’ of the sterling area until 23 June 1972, when they were reclassified by the U.K. as ‘non-scheduled’ and became subject to British exchange controls on capital movements. On 4 July 1972 South Africa's exchange control regulations were amended accordingly and ceased to distinguish between sterling and non-sterling area countries. At this time, the distinction between the four countries in the ‘rand currency area’ and all others outside was introduced into the South African regulations.

page 103 note 1 Botswana, Lesotho, and Swaziland had all issued commemorative coins with legal tender status in the past, but these were never in general circulation.

page 113 note 1 Regulatory laws passed in 1865 and 1879 were on the books but not enforced.