Exchange control was first introduced in South Africa in 1939. Section 9 of the Currency and Exchange Act (Act No 9 of 1933) empowers the President to make regulations on the currency, banking or exchange.
The purpose of exchange control is two-fold:
- To ensure that foreign currency acquired by residents of South Africa through transactions of a current or of a capital nature is allowed into the South African banking System.
- To ensure that foreign currency resources in the form of real or financial capital assets held in South Africa are not lost abroad due to transfers.
Exchange Control monitors the movement of financial and real assets (money and goods) into and out of South Africa, simultaneously avoiding interference with the performance of the commercial, industrial and financial systems of the country.
The controls are administered by the South African Reserve Bank through the authorized dealers available at every South African bank. All the monies transferred from overseas into South Africa or from South Africa into another country, have to be declared with the reserve bank.
For more information please log onto www.reservebank.co.za