Eswatini Lilangeni (SZL) Currency Guide 2025: History, Economy & Current Value

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What Is the Eswatini Lilangeni (SZL)?

The Eswatini Lilangeni (SZL) serves as the official currency of the Kingdom of Eswatini, formerly known as Swaziland. It is divided into 100 cents and issued by the Central Bank of Eswatini. The currency code SZL is commonly used in foreign exchange markets.

Since its inception, the SZL has been firmly pegged to the South African Rand (ZAR). As of early 2024, 1 SZL is approximately equivalent to 0.06 US dollars, mirroring the Rand’s value.

Key Highlights

• The SZL is Eswatini’s national currency, introduced in 1974.
• It maintains a fixed exchange rate with the South African Rand.
• Both currencies function within the Common Monetary Area (CMA) of Southern Africa.

Historical Background and Monetary Structure

Eswatini adopted the Lilangeni in 1974, replacing the South African Rand at par. This change coincided with the formation of the Rand Monetary Area, which allowed Eswatini, Botswana, and Lesotho to issue their own currencies while still using the Rand as legal tender.

In 1986, the Rand Monetary Area evolved into the Common Monetary Area, enhancing monetary cooperation among member states and granting Eswatini greater control over its monetary policy. Despite the option to float its currency, Eswatini has maintained the peg to the Rand to ensure economic stability and facilitate trade.

The Role of the Common Monetary Area

Under the CMA agreement, Eswatini enjoys unique privileges, including exemption from maintaining foreign exchange reserves at the South African Reserve Bank, unlike other member countries. Although the country temporarily ceased accepting the Rand as legal tender, it reinstated this practice in 2003 to support seamless financial transactions.

The peg to the Rand means that Eswatini's currency value and economic health are closely linked to South Africa’s economic conditions, especially inflation. However, Eswatini retains independent control over its interest rates, allowing it to mitigate external economic impacts.

Economic Overview of Eswatini

Eswatini is a small Southern African nation governed by a dual monarchy system, with political and legal frameworks influenced by its colonial history under British and Dutch rule. It gained full independence in 1968.

The country’s economy is modest and developing, heavily reliant on trade with South Africa, the United States, and the European Union. In recent years, economic growth has been constrained by factors such as drought, with a large portion of the population engaged in subsistence farming.

Eswatini experienced a suspension from the U.S. African Growth and Opportunity Act in 2015 due to democratic concerns but was reinstated in 2017. Between 2015 and 2019, the nation’s GDP growth averaged 2.2%, with inflation hovering around 2.3%, according to World Bank data.

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