Foreign exchange system modernisation
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Individual Reform: Foreign exchange system modernisation 2026 - 2027

Modernise forex system for trade and investment to align with OECD code of liberalisation

No data available for the deliverable: Modernise forex system for trade and investment to align with OECD code of liberalisation

No data available for the deliverable: Modernise forex system for trade and investment to align with OECD code of liberalisation

No data available for the deliverable: Modernise forex system for trade and investment to align with OECD code of liberalisation

No data available for the deliverable: Modernise forex system for trade and investment to align with OECD code of liberalisation

No data available for the deliverable: Modernise forex system for trade and investment to align with OECD code of liberalisation

Summary

Modernising South Africa's foreign exchange controls involves phased liberalisation of forex regulations, regulatory updates and alignment with the OECD code and AfCFTA requirements.

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Is it working?

The reform is advancing, with incremental improvements and strong alignment with global trends. Full liberalisation is expected after 2026, as regional integration deepens.

Actions

The system is becoming more flexible and transparent, supporting trade and investment, though full liberalisation is still in progress.

Are there plans?

Regulatory changes are being implemented incrementally, with new reporting requirements and stakeholder engagement.

Is it on the agenda?

Forex modernisation is an ongoing SARB and Treasury agenda item, with regular updates and consultations.

Goals

To modernise foreign exchange controls, facilitate trade and investment and align with international standards.

References

Departments / Govt Institutions

National Treasury South African Reserve Bank (SARB)

Summary

Modernising South Africa's foreign exchange controls involves phased liberalisation of forex regulations, regulatory updates and alignment with the OECD code and AfCFTA requirements. SARB, Treasury, and the FSCA are reforming the foreign exchange (forex) system, liberalising it for trade/investment and updating to the OECD code through new platforms and protocols. New forex system has been tested, OECD-aligned protocols have been drafted and the banking sector is being engaged for operational rollout in Q1-2026.

Canvas not supported.

Is it working?

The reform is advancing, with incremental improvements and strong alignment with global trends. Full liberalisation is expected after 2026, as regional integration deepens. Implementation is close to completion; awaiting further OECD/market feedback.

Actions

The system is becoming more flexible and transparent, supporting trade and investment, though full liberalisation is still in progress. The system is transitioning efficiently with operational guidance in place. OECD benchmarks are to be verified.

Are there plans?

Regulatory changes are being implemented incrementally, with new reporting requirements and stakeholder engagement. The rollout plan in place for phased compliance with legacy conversion of platforms and guidance for banks.

Is it on the agenda?

Forex modernisation is an ongoing SARB and Treasury agenda item, with regular updates and consultations.

Goals

To modernise foreign exchange controls, facilitate trade and investment and align with international standards.

References

Departments / Govt Institutions

National Treasury South African Reserve Bank (SARB)

Summary

SARB, National Treasury and the FSCA are reforming the forex system through upgraded platforms, revised protocols and gradual liberalisation. Budget Review 2026 advances this agenda by raising several capital‑flows thresholds (including the single discretionary allowance, cross‑border card transaction and miscellaneous payments limits and the banknote travel allowance) and by removing interest rate caps on inward foreign loans, provided pricing is market‑related and loans are reported to SARB. It also signals expansion of the HoldCo regime to allow asset managers to manage foreign asset portfolios and trade foreign currency instruments from South Africa, contributing to plans for a synthetic financial centre (SCF).

Canvas not supported.

Is it working?

Implementation is progressing smoothly and incremental liberalisation is being framed within a disciplined, risk‑based capital flows regime. The key challenge is calibrating the synthetic financial centre concept and other relaxations so that they facilitate productive investment and on‑shore intermediation rather than encouraging regulatory arbitrage or destabilising flows.

Actions

SARB and Treasury have tested new forex‑system protocols, engaged banks on operational rollout, implemented higher thresholds and removed inward‑loan interest caps, and outlined the planned expansion of the HoldCo regime in Budget Review 2026.

Are there plans?

Authorities plan phased implementation of system changes and liberalisation measures. It is engaging the OECD Code of Liberalisation and design of the synthetic financial‑centre framework, including tax, regulatory and reporting requirements for on‑shore asset‑management HoldCos.

Is it on the agenda?

Forex‑system modernisation is a recurring deliverable in SARB and Treasury strategies and is explicitly advanced in Budget Review 2026’s financial sector update and fiscal strategy discussion.

Goals

Modernise South Africa’s forex regime and systems, liberalising for trade and investment while maintaining robust capital‑flows oversight and aligning with OECD standards.

References

Departments / Govt Institutions

National Treasury South African Reserve Bank (SARB)

Summary

SARB, National Treasury and the FSCA are reforming the forex system through upgraded platforms, revised protocols and gradual liberalisation. Budget Review 2026 advances this agenda by raising several capital‑flows thresholds (including the single discretionary allowance, cross‑border card transaction and miscellaneous payments limits and the banknote travel allowance) and by removing interest rate caps on inward foreign loans, provided pricing is market‑related and loans are reported to SARB. It also signals expansion of the HoldCo regime to allow asset managers to manage foreign asset portfolios and trade foreign currency instruments from South Africa, contributing to plans for a synthetic financial centre (SCF).

Canvas not supported.

Is it working?

Implementation is progressing smoothly and incremental liberalisation is being framed within a disciplined, risk‑based capital flows regime. The key challenge is calibrating the synthetic financial centre concept and other relaxations so that they facilitate productive investment and on‑shore intermediation rather than encouraging regulatory arbitrage or destabilising flows.

Actions

SARB and Treasury have tested new forex‑system protocols, engaged banks on operational rollout, implemented higher thresholds and removed inward‑loan interest caps, and outlined the planned expansion of the HoldCo regime in Budget Review 2026.

Are there plans?

Authorities plan phased implementation of system changes and liberalisation measures. It is engaging the OECD Code of Liberalisation and design of the synthetic financial‑centre framework, including tax, regulatory and reporting requirements for on‑shore asset‑management HoldCos.

Is it on the agenda?

Forex‑system modernisation is a recurring deliverable in SARB and Treasury strategies and is explicitly advanced in Budget Review 2026’s financial sector update and fiscal strategy discussion.

Goals

Modernise South Africa’s forex regime and systems, liberalising for trade and investment while maintaining robust capital‑flows oversight and aligning with OECD standards.

References

Departments / Govt Institutions

National Treasury South African Reserve Bank (SARB)

Analyst: Tinashe Kambadza
Status: in-progress
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