Exchange-control regulations are administered by the South African Reserve Bank on behalf of the Minister of Finance. The Minister of Finance has also appointed certain banks to act as authorised dealers in foreign exchange, as well as authorised dealers with limited authority in foreign exchange, which gives them the right to buy and sell foreign exchange, subject to conditions and within limits prescribed by the Financial Surveillance Department of the Reserve Bank.
Authorised dealers are not agents of the department, but act on behalf of their customers. Since 1994, South Africa has considerably reformed its exchange-control policies. There have been gradual exchange-control reforms concerning individuals, corporate and institutional investors.
The liberalisation has been focused on progressively increasing the individual foreign capital allowance, increasing institutional investors’ foreign exposure and allowing South African firms to raise capital and expand their operations offshore from a domestic base.