The Great British Pound (GBP) is a highly evolved and stable economy, the official currency of the UK. The GBP is a major currency and is one of the most widely traded worldwide. The South African Rand (Africans: Zuid-Afrikaanse Rand) is abbreviated as ZAR. ZAR is considered the most important currency on the African continent. Even with this unofficial status, the ZAR is regarded as a globally volatile currency.
South Africa is a commodity and export-based economy. Due to that, the Rand’s value is linked to global prices and is disproportionately impacted by perceptions of global economic risk. The currency pair GBP/ZAR is a common one on the forex market. Seasoned merchants prefer this trading instrument for its strong stability and predictability. During the European sessions we witness the most extreme GBP/ZAR bidding. The pound versus rand is an ‘exotic’ currency pair that can give an established investor the opportunity for strong volatility and large returns. In this combination, GBP to ZAR, the GBP is called the base currency and the quotation currency is known as the ZAR.
Historical analysis of the GBP/ZAR pair
Most Notable Factors that Influence the GBP/ZAR
- Inflation or Consumer Price Index (CPI)
- Interest rates and other central bank monetary policies apply.