The Majlis Archive
Finance - Banking - Business The Majlis Vol 26 No 02, p.6

During the old 1950's era the South African Pound was the currency in use and it had the 'promise to pay', making it a Promissory Note having the opti

Question

During the old 1950's era the South African Pound was the currency in use and it had the 'promise to pay', making it a Promissory Note having the option of convertibility to gold at the Reserve Bank. Subsequently, in 1961 the Rand came into effect and the Pound fell away. Now what is the status of loans given during that era, but being paid only today in 2021?

Answer

The original cur-

PAYING OLD DEBT

rency which was a 100% representation of gold is extinct. The loan given in that era has to be incumbently paid today in terms of gold.

The amount of gold the loaned sum could have acquired in that era, has to be paid today.

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The Majlis Vol 26 No 02
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