Currencies comprise banknotes and coins. Synonyms for currencies are money or cash.
In South Africa, the Reserve Bank has monopoly power in terms of the South African Reserve Bank Act to produce, issue, withdraw and destroy currency, comprising banknotes and coins. No other issuances in South Africa may be called banknotes or coins.
Though both banknotes and coins are currency, their production processes are very different. Coins are produced in a metal pressing facility and can circulate for practically indefinite periods. South African coins are produced by the South African Mint Company, a subsidiary of the Bank.
Banknotes are printed on cotton/linen substrate in a print shop. South African banknotes are produced by the South African Banknote Company, another subsidiary of the Bank.
Banknotes have a limited lifespan, as they wear out or get torn. Worn notes cannot be used in ATMs and must be withdrawn from circulation for destruction.
Banknotes have no intrinsic value and are only valuable because of acceptance at face value in trade. One of the problems in countries with hyperinflation is that their banknotes are no longer accepted, as they lose value too rapidly. A regional example is Zimbabwe, which had to abolish its own currency amid hyperinflation in 2008.
The description of banknotes and coins sounds simple enough, but it is not the end of the story.
My book titled Die Boogbrug vanaf Orania II na Orania III (The Arch-Bridge from Orania II to Orania III) was published by Naledi in November 2025. Research for the book opened my eyes to the world of private currencies.
Orania, a town on the southern bank of the Orange River in the Northern Cape, has in circulation its own private currency, the ora (Ф). The ora is issued at par to the rand and circulates alongside rands in the town.
Orania was established in the 1960s as part of the Orange River Water Project development. After completion of the scheme, Orania was bought in 1991 under the leadership of Prof Carel Boshoff for the establishment of an Afrikaner town. The town’s objectives include the growth of its identity and self-determination, and the ora serves as one symbol of these objectives.
To overcome the limitations of legislation, oras in circulation are called coupons rather than banknotes. Oras were first issued in 2004 and form part of the culture of the town, with prices often expressed in ora rather than in rand.
The research about the ora highlighted several other international private currencies. Some were launched but did not stand the test of time and disappeared from circulation.
Private currencies in international circulation are berkshares in the Berkshires area of Massachusetts in the US; chiemgauer in Prien am Chiemsee in Germany; eko in Findhorn Ecovillage in Scotland; and the Salt Spring dollar of Salt Spring Island off the Canadian coast.
In each instance, these private currencies are issued at par with the local currency, as is the case with the ora in Orania. These private currencies therefore change value with local currencies and do not provide any protection against inflation.
Attempts to link the values of these private currencies to commodities or to a basket of consumer goods were unsuccessful. The problem is that parallel circulation with the national currency will become very complicated if the par value is not maintained.
Private currencies have several advantages for users and communities, such as the stimulation of local trade. However, the major advantage is the safety of cash in circulation. If large quantities of any private currency are stolen in the form of cash, it can only be used in the community where the currency is issued.
Recently, a new series of ora coupons was issued, which includes a Ф500 denomination. This coupon depicts Boshoff, the founder of Orania, and the replica of the statue of President Paul Kruger erected in Orania. The back depicts a bird, one of Orania’s cultural holidays and an advertisement, which helps to cover the printing cost of the coupons.
The Ф500 coupon was issued because it became obvious that a Ф200 denomination as the biggest coupon in circulation no longer met the requirements of the community of Orania.
The Reserve Bank issued the R200 note as the biggest denomination of the rand in 1993. Adjusted for inflation, R200 from 1993 now amounts to about R1,225, or six times the initial value.
This leaves little doubt that the Bank should take note (pun intended) of the recent development in Orania and consider the issuance of a R500 note.
Rossouw is honorary professor at Wits Business School and economist at Altitude Wealth
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.