Is it working?

The direction is unambiguously positive and the replacement of 1961 exchange controls is long overdue. However, legal practitioners note the draft may not yet fully deliver the "positive bias" promised. Specific concerns include the treatment of existing crypto asset holdings in rand; mandatory declaration provisions; the non-publication of exemptions (which are critical to enabling the transition); and how existing non-compliance with exchange controls will be regularised. Public comment period closes 10 June 2026 and the quality of industry submissions and the government's response will determine whether the final regulations match the ambition of the announcement.

Actions

SARB and NT 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?

Yes. Draft regulations have been published for public comment and final regulations are expected to be promulgated after the 10 June 2026 comment deadline. Specific exemptions for certain transaction types are being considered separately under draft regulation 23 and have not yet been published. Authorised Dealer (bank) manuals will be updated after promulgation.

Is it on the agenda?

Yes. Finance Minister Godongwana announced this reform in the 2026 Budget Speech - NT and SARB are collaborating on this. SA has formally committed to adhere to the OECD Codes of Liberalisation of Capital Movements, confirmed by NT at Operation Phumelela Lekgotla II (11 May 2026).

Goals

To replace South Africa's outdated, restrictions-heavy exchange control system (which dates back to 1961 and was designed for apartheid-era capital controls) with a modern framework that allows legitimate cross-border capital flows freely while targeting only genuinely high-risk transactions for oversight.

Documents

• Document One

References

• Reference Link One
• Reference Link Two

Departments / Govt Institutions

National Treasury Prudential Authority South African Reserve Bank (SARB)