Aside from the amnesty for people with "grey money", Trevor Manuel announced other exchange control measures in his 2003 Budget.
- New foreign investment opportunities using rand-denominated products, which have been restricted in recent years, are likely to become available following changes to the offshore investment limits placed on local financial institutions.
Manuel removed a cash-flow restriction which has been in place for the past two years. This restricted institutions to investing offshore a maximum of 10 percent of the previous year's net cash flow from investors. An overall offshore investment limit of 15 percent of the total assets of retirement funds and life assurance investment portfolios, and 20 percent of unit trust assets, remains in place.
It is expected that new investment products will become available and many currently capped rand-denominated foreign unit trusts and endowment life assurance policies will be available for investment.
- Up to R12 billion in so-called blocked rands are to be released. Blocked rands refer to the money that emigrants were not permitted to take with them on leaving South Africa. The amounts may now be removed but with an exit charge of 10 percent. Money already legally removed will not be subject to the exit charge, while new emigrants will be allowed R750 000 (R1.5 million for a family) and will be subject to the exit charge on amounts above this. The old emigration settling-in allowance of R400 000 for a family falls away.
- New travel allowances are expected to be announced by the Reserve Bank shortly.
See also:
Own up about 'grey money' or be caught out