8. Transactions With Common Monetary Area Residents

8.1
Introduction

There are no foreign exchange restrictions between banks of the CMA member countries in respect of cross-border transactions amongst themselves. Lesotho, Namibia and eSwatini have their own monetary authorities and legislation. The application of exchange control within the CMA is governed by the Multilateral Monetary Agreement. Investments and transfers of funds in Rand from/to South Africa to/from other CMA countries do not require the approval of the Financial Surveillance Department.

CMA country currencies comprise of the following: South African Rand, Lesotho Maloti, eSwatini Emalangeni and Namibian Dollar.

8.2
General

Individuals from other CMA countries should note that South African Authorised Dealers are not permitted to enter into foreign exchange transactions (i.e. in foreign currency other than CMA country currencies) with residents of other CMA countries. If such requests are received, residents of other CMA countries will be referred back to their bankers in the CMA country concerned.

8.3
Travel

As an exception to subsection 8.2 above, foreign currency may be purchased by diplomats, accredited foreign diplomatic staff as well as students with a valid student card from other CMA member countries while in South Africa.

Authorised Dealers and/or ADLAs may also sell foreign currency to CMA residents in South Africa, to cover unforeseen incidental costs whilst in transit, subject to viewing a passenger ticket confirming a destination outside the CMA.

CMA residents who travel overland to and from Namibia through Botswana qualify to be accorded the Botswana Pula equivalent of an amount not exceeding R25 000 per calendar year. This allocation does not form part of the single discretionary allowance limit of R1 million per calendar year for South African residents.

8.4
Export of motor vehicles

Motor vehicles principally designed for the transport of persons and goods, but excluding vehicles exported by diplomatic and foreign representatives and new vehicles exported by local manufacturers or their appointed agents, may not be exported for sale outside the South African Customs Union, i.e. Botswana, Lesotho, Namibia and eSwatini except by virtue of an export permit issued in terms of the International Trade Administration Act, 2002 (Act No. 71 of 2002).