Welcome to Exchange Control South Africa. We are an independent web resource providing information to the public on exchange control and financial surveillance in South Africa. Whilst we endeavour to ensure that information is up-to-date, acurate, relevant and credible, we also value diversity of opinion and so use of the Exchange Control South Africa website is governed by our legal agreements, notices and policies.
Exchange controls assist in the monitoring of cross-border capital movements while providing flexibility to cope with situations of economic financial instability.
Exchange controls aim to restrict the buying and selling of a national currency or to preserve foreign currency reserves. Controls may include a ban on the conversion of the proceeds of certain assets or by certain categories of person, an obligation to surrender foreign exchange proceeds to the central or local bank, authorisation requirements, quantitative limits or indirect methods. Exchange controls are commonly imposed because of concerns about outward flows of currency but they can also be imposed to restrict inward flows, if for example an influx of funds risks damaging an economy.
Exchange controls essentially:
- prevent the loss of foreign currency resources through the transfer abroad of real or financial capital assets held in South Africa;
- effectively control the movement of financial and real assets into and out of South Africa; and
- avoid interfering with the efficient operation of the commercial, industrial and financial system.
The Currency and Exchanges guidelines for individuals and business entities have been published to assist in providing a general understanding of the exchange control system in South Africa and its day-to-day impact on South African residents.
These guideline documents should be read in conjunction with the Currency and Exchanges Manual for Authorised Dealers and the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority which contain the permissions and conditions applicable to transactions in foreign exchange that may be undertaken by an Authorised Dealer or an Authorised Dealer in foreign exchange with limited authority (ADLA) in their own capacity or on behalf of their clients in terms of the Exchange Control Regulations.
The Financial Surveillance Department (FSD) of the South African Reserve Bank (SARB) has progressively modernised its capital flows and investment framework over the past decades to benefit from global integration while safeguarding domestic interests.
The Minister of Finance has delegated National Treasury’s powers, functions and duties assigned under the Exchange Control Regulations (with certain exceptions) to the Governor and / or a Deputy Governor of the SARB, the Head of the FSD and other officials in the department. This means that the SARB is responsible for the daily administration of exchange controls in South Africa.
These powers include appointing certain registered banks to act as Authorised Dealers in foreign exchange and appointing ADLAs. Appointment gives these banks and ADLAs the right to buy and sell foreign exchange, subject to conditions and within limits prescribed by the FSD. Authorised Dealers and ADLAs are not agents for the FSD, but act on behalf of their customers.
Please note that all information provided on the Exchange Control South Africa website is subject to our terms and conditions of use agreement, including our disclaimer notice.