pc
nid 91124
Mar 06, 2026
rghosh@vixio.com
South Africa
Reserve Bank of South Africa
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1650 charsSouth African Reserve Bank Publishes Draft Exchange Control Circulars for Public Comment
On an unspecified date in 2026, the South African Reserve Bank (SARB) published draft Exchange Control circulars for public comment following announcements made by South Africa's Minister of Finance in the 2026 Budget.
The draft circulars address several key areas. They propose increased new limits for cross-border payments and investments by individuals in South Africa, reflecting changes to exchange control policy. Additionally, the circulars aim to streamline certain administrative processes related to exchange control compliance. The circulars also establish the Standalone Prime Rate (SPR) as the reference rate for Prime Lending Rate (PLR)-linked financial contracts. This change is intended to create a clearer link between monetary policy and lending rates, while improving public understanding of loan pricing mechanisms for borrowers and lenders.
The draft circulars apply to individuals and entities subject to South African exchange control regulations, including those engaging in cross-border financial transactions and investments. The changes are significant as they represent a modernisation of exchange control frameworks and enhanced alignment between monetary policy transmission and retail lending practices.
The closing date for submission of comments on the draft circulars is 17 March 2026. Stakeholders wishing to respond should access the draft circulars through the SARB's official channels and submit their feedback by the specified deadline.
**Reference:**
South African Reserve Bank. Draft Exchange Control circulars for public comment following 2026 Budget announcements. Available at: [SARB official website]
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2020 charsSouth African Reserve Bank Publishes Draft Exchange Control Circulars for Comment
On March 6, 2026, the South African Reserve Bank (SARB) issued a consultation on the exchange controls following the 2026 Budget announcements by the Minister of Finance.
The proposed circulars introduce changes aimed primarily at increasing limits for cross-border payments and investments by individuals in South Africa, while also streamlining certain administrative processes under the exchange control framework.
Key proposed measures include:
Increase in single discretionary allowance: The annual limit for individuals is proposed to increase from R1 million to R2 million (approximately US $ 119,459), with the travel allowance for minors rising from R200,000 to R400,000.
Higher limits for card-based cross-border payments: Payments for imports, services, or subscriptions via credit or debit cards would increase from R50,000 to R100,000 per transaction.
Increase in miscellaneous payments to non-residents: The limit for certain miscellaneous cross-border payments would rise from R100,000 to R200,000 per transaction.
Higher cash export/import limits: The maximum amount of South African banknotes that travellers may carry across borders would increase from R25,000 to R100,000.
Removal of interest rate caps on inward foreign loans: Residents would be allowed to obtain foreign loans without prescribed interest rate thresholds, provided the rates are market-related and properly reported.
Simplified merchanting trade rules: The settlement time limit for merchanting transactions would be standardised to four months between payment to the foreign supplier and receipt from the foreign buyer.
Operational flexibility for authorised dealers: Banks would be permitted to renew previously approved arrangements for local settlement in foreign currency between residents via customer foreign currency accounts, provided the original conditions remain unchanged.
Stakeholders are invited to review the draft circulars and submit comments to the SARB. The consultation period closes on March 17, 2026