South Africa Relaxes Exchange Controls

The South African government has announced a modest relaxation of its exchange control regime. Financial institutions are now able to invest up to 25% of total assets outside South Africa, against 15% previously. The relaxation follows the acquisition of Absa

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The South African government has announced a modest relaxation of its exchange control regime. Financial institutions are now able to invest up to 25% of total assets outside South Africa, against 15% previously. The relaxation follows the acquisition of Absa by Barclays Bank, which helped to persuade the authorities that it makes sense to allow South African banks to expand abroad, and especially in Africa.

“This has no immediate or direct impact on our sub-custody clients,” says David Price, director, Financial Asset Services and head of custody at Standard Bank of South Africa in Johannesburg. “But it clearly makes the South African market more attractive, and indicates that the exchange control regime is gradually being relaxed.

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