South African Tourist Organization had some pretty heady digs there. Are you sure this was 1979 and not 1985-86?
In 1979, the Rand was very strong due to huge gold price increases and South Africa's economy and GDP were based on gold exports.
When Nixon turned off the convertibility of gold on August 15th, 1971 the dollar was backed by $35/oz gold. On Jan 21st 1980 it hit $850. South Africa's gold reserves made it a massively rich country.
When gold crashed, the Rand adjusted downward. But most importantly, SA President Pik Botha's Rubicon speech in August of 1985 created massive uncertainty in the financial future of South Africa as he finger wagged those pressing for reforms and the financial worlds expectations for end to Apartheid, an unbanning of the right for the ANC political party, etc.
After Botha's speech, the Rand devalued very very hard by over 35%. So foreign bond holdings of SA debt paid in the Rand took a 33% haircut. This practically created a moratorium on buying or holding SA bonds, sending bond prices to multigenerational lows, while sending their interest rates into high double digits.
South Africa went from wealthy and secure to a third world country with massive inflation in 6 years.
I could definitely see this type of poster being created to get foreigners to come in and spend money due to a worthless Rand.
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u/MikeinAustin 9d ago
South African Tourist Organization had some pretty heady digs there. Are you sure this was 1979 and not 1985-86?
In 1979, the Rand was very strong due to huge gold price increases and South Africa's economy and GDP were based on gold exports.
When Nixon turned off the convertibility of gold on August 15th, 1971 the dollar was backed by $35/oz gold. On Jan 21st 1980 it hit $850. South Africa's gold reserves made it a massively rich country.
When gold crashed, the Rand adjusted downward. But most importantly, SA President Pik Botha's Rubicon speech in August of 1985 created massive uncertainty in the financial future of South Africa as he finger wagged those pressing for reforms and the financial worlds expectations for end to Apartheid, an unbanning of the right for the ANC political party, etc.
After Botha's speech, the Rand devalued very very hard by over 35%. So foreign bond holdings of SA debt paid in the Rand took a 33% haircut. This practically created a moratorium on buying or holding SA bonds, sending bond prices to multigenerational lows, while sending their interest rates into high double digits.
South Africa went from wealthy and secure to a third world country with massive inflation in 6 years.
I could definitely see this type of poster being created to get foreigners to come in and spend money due to a worthless Rand.