He said that Mandela's release after 27 years in prison for fighting white-only rule "marked the beginning of a new era of hope for our country and the world." Zuma did not say when the new notes would appear.

Mandela's image will appear on all South African notes, which are issued in denominations of 10, 20, 50, 100 and 200 rands, officials said.

Local media had reported that speculation about yesterday's government news conference had put pressure on the rand, causing it to tumble 2.6 percent on Friday. However, the rand revived after reassurance from bank officials that the announcement would not be about interest rates or central bank staff changes.

Mandela, the 93-year-old Nobel Peace prize winner, became South Africa's first black president in 1994. Known affectionately by his clan name, Madiba, he has retired from public life and has not been seen in public since the closing ceremony of the Soccer World Cup in Johannesburg in July 2010.