SZL - Swazi Lilangeni

Swazi Lilangeni overview

When talking about Eswatini, a small country nestled between South Africa and Mozambique, perhaps the least-known aspect is its currency - the Swazi lilangeni (Swaziland Lilangeni), symbolized as E. Introduced in 1974, the lilangeni is not just a means of payment but also carries fascinating stories of history and culture.

An interesting feature of the lilangeni is its special connection to South Africa's rand, which is accepted as a parallel currency in Eswatini. With a fixed exchange rate of 1:1 to the rand, the lilangeni is also easily used in other countries within the Common Monetary Area (CMA).

The name "lilangeni" (plural: emalangeni) is more than just the name of a currency; it holds deep cultural significance. It originates from "emaLangeni," a term referring to the ancient Swazi people who migrated to the region of Swaziland during the 18th and 19th centuries.

These were the "People of the Sun," who carried with them the traditions and resilient spirit of the Swazi. Thus, the name lilangeni embodies the history, culture, and national identity of the Swazi people.

The History of the Lilangeni's introduction

Before 1974, Eswatini exclusively used South Africa's rand as its primary currency. However, with the signing of the Rand Monetary Area (RMA) Agreement that same year, Eswatini, Botswana, and Lesotho were permitted to issue their own currencies.

To ensure economic stability, Eswatini's lilangeni was pegged to the rand at an equivalent exchange rate. Despite having its own currency, Eswatini continued to recognize the rand as legal tender domestically, facilitating trade and financial relations with South Africa. This arrangement allowed the lilangeni to maintain both independence and stability within the regional monetary system.

Denominations and design of the currency

The lilangeni comes in various denominations, ranging from small coins to larger banknotes. Initially, in 1974, Eswatini issued coins in denominations of 1, 2, 5, 10, 20, and 50 cents, along with the 1 lilangeni coin. Each coin had a unique design, including the dodecagonal shape (12 sides instead of the usual round shape) for the 1 and 50 cent coins, rounded square edges for the 2 cent coin, and spiral patterns for other coins.

Over time, Eswatini improved and altered the materials used to produce these coins to adapt to economic conditions and practical needs. For example, in 1992, Eswatini began issuing coins made of nickel-plated steel instead of other metals. By 2016, a new series of coins was introduced, and all older coins were withdrawn to avoid confusion.

The Role of the Lilangeni in the national economy

Despite being a small country, Eswatini has a relatively flexible monetary system, closely tied to its relationship with South Africa. The lilangeni maintains a fixed 1:1 exchange rate with the South African rand to ensure price stability and facilitate trade. This connection brings numerous benefits but also comes with certain challenges.

With this close linkage, Eswatini faces fewer concerns about significant fluctuations in currency value, which helps shield its small economy from major shocks. However, this dependency also means that Eswatini's economy is significantly affected by economic changes in South Africa.

Exchange Rate and Impact of the Lilangeni

Eswatini, despite being a small country, maintains significant trade relationships with South Africa, the United States, and the European Union. Therefore, the stability of the lilangeni plays a crucial role in ensuring economic and social stability for its citizens.

In recent years, Eswatini's economy has faced challenges due to prolonged drought and various social issues. About three-quarters of the population relies on subsistence farming, but low land productivity makes life difficult for many. With the lilangeni tied to South Africa's economy, factors such as inflation and exchange rates in South Africa directly impact the people of Eswatini.

The exchange rate of the lilangeni is often pegged to the South African rand (ZAR) at a 1:1 ratio, reflecting the close economic ties between the two countries. However, the Eswatini government continues to make efforts to maintain monetary stability to support its people.

As of November 2024, the exchange rates for the lilangeni against major currencies are as follows:

• 1 USD = 18.0960 SZL

• 1 SZL = 1,439.04 VND

Amid the challenges faced by Eswatini, the lilangeni remains a symbol of resilience and the determination of the Swazi people. The stability of this currency not only supports the national economy but also serves as a source of national pride. Despite obstacles, the lilangeni continues to be a reliable companion for Eswatini’s future.