Exchange Control Circular No. 6/2013

Circular Reference: Exchange Control Circular No. 6/2013

Circular Date: 27 February 2013

Circular Status: Withdrawn (see Exchange Control Circular No. 1/2014)

Prudential limit for foreign diversification by Authorised Dealers – African allowance

Authorised Dealers will be allowed to invest an additional five per cent of their total liabilities, excluding total shareholder’s equity, for expansion into Africa, in addition to the current macro-prudential limit of 25 per cent.

As a result of this dispensation, the Macro-Prudential Foreign Exposure Limit Return will be amended to incorporate the additional five per cent African allowance. The revised template may be downloaded from the South African Reserve Bank’s website — www.reservebank.co.za, by following the links: Home > Regulation and supervision > Financial surveillance and exchange controls > Prudential returns > Macro-prudential foreign exposure limit return.

In view of the aforementioned, a new subsection (b) has been added to Section B.2(B)(iv) of the Exchange Control Rulings:

“(b) Authorised Dealers are allowed to invest an additional five per cent of their total liabilities, excluding total shareholder’s equity, for expansion into Africa.”

The existing subsections (b) to (l) have been renumbered (c) to (m) respectively.

Replacement pages of the Exchange Control Rulings incorporating the relevant amendments are attached to Exchange Control Circular No. 7/2013 of 2013-02-27.

Head of Department

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