Why South Africa should completely abolish all exchange controls

Foreign exchange controls are various forms of controls imposed by a government on the purchase and sale of foreign currencies by residents or on the purchase or sale of local currency by non-residents.

Such controls used to be common in most countries, chiefly poorer ones, until the 1990s when free trade and globalisation started a trend towards economic liberalisation.

Today, countries such as South Africa which still impose exchange controls are the exception rather than the rule.

The Money Show’s Bruce Whitfield interviewed Andrew Hannington, CEO of Grant Thornton Johannesburg, about the reasons why it’s time to completely abolish exchange controls.

Scroll down for quotes from the audio below.

I don’t think there are even 100 000 people in South Africa with enough money that remaining exchange controls matter to them. For most people exchange controls mean nothing.

Andrew Hannington

Many African countries have abandoned exchange controls to good effect.

Andrew Hannington

The ultra-rich will invest in South Africa if they are free to move their money in and out.

Andrew Hannington

We need to open up South Africa to Foreign Direct Investment. The money must flow in and out.

Andrew Hannington

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : Why South Africa should completely abolish all exchange controls


Recommended

by THE NEWSROOM

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
‘I’d get slaughtered for this, but I think it’s possible to rehabilitate Gigaba’

‘I’d get slaughtered for this, but I think it’s possible to rehabilitate Gigaba’

Bruce Whitfield asks Business Day Editor-in-Chief Peter Bruce to speculate on President Cyril Ramaphosa’s Cabinet.

JoJo - struggling to keep up with demand - now has a turnover of R600 million

JoJo - struggling to keep up with demand - now has a turnover of R600 million

The JoJo brand has entrenched itself in the psyche of South Africans. Bruce Whitfield interviews its MD, Grant Neser.

The mighty US dollar is smashing African currencies to smithereens

The mighty US dollar is smashing African currencies to smithereens

We interviewed an Emerging Markets Strategist about the impact of the US dollar on African currencies.

How Bitcoin may be the death of money (and central banking) as we know it

How Bitcoin may be the death of money (and central banking) as we know it

Money and central banking as we know is about to change radically. We explain the science behind cryptocurrencies…

5 reasons why the dollar is so strong right now

5 reasons why the dollar is so strong right now

Currency specialist Brigid Taylor talks about why the dollar is so strong and why this matters.

'My mandate is clear: protect the value of the rand in YOUR pocket!' - Kganyago

'My mandate is clear: protect the value of the rand in YOUR pocket!' - Kganyago

The newly appointed SARB Governor eats, sleeps and breathes protecting the value of the rand in the interest of long-term growth.

Popular articles
Social media give President Ramaphosa the nod

Social media give President Ramaphosa the nod

Social media reacts with love and hope to President Ramaphosa's maiden State Of the Nation Address.

‘Maimane, Malema will find Ramaphosa harder to deal with than easy-target Zuma’

‘Maimane, Malema will find Ramaphosa harder to deal with than easy-target Zuma’

Afternoon Drive’s Stephen Grootes interviews Senior Research Associate at the Institute for Security Studies Judith February.

EFF's walk out was bizarre - Baleka Mbete

EFF's walk out was bizarre - Baleka Mbete

Speaker of Parliament Baleka Mbete shares her views on the future of Parliament and the readiness for Sona 2018

Hawks video shows fugitive Ajay Gupta leaving SA

Hawks video shows fugitive Ajay Gupta leaving SA

The Hawks are in possession of video footage showing Gupta, wanted in connection with Vrede dairy farm scandal, leaving SA.

Hope Ramaphosa: Cyril never lifted a finger to me, he wouldn't beat a woman

Hope Ramaphosa: Cyril never lifted a finger to me, he wouldn't beat a woman

Cyril Ramaphosa's ex-wife says abuse allegations spread by EFF leader Julius Malema are an attempt to tarnish his reputation.