Johannesburg – The South African Reserve Bank's (Sarb's) Exchange Control Department's name will be changed to the Financial Surveillance Department from August 2 in line with the gradual changes in its functions, the Sarb announced on Friday.
This move is in line with the gradual change in the functions and responsibilities of the Exchange Control Department after the Minister of
Finance, Pravin Gordhan
, announced in his Budget the shift from exchange controls to a system of prudential regulation.
The shift entails replacing unnecessary administrative controls with improved surveillance and prudential limits on foreign exposure risks.
"At this stage, the change does not affect the application of the Exchange Control Regulations, Orders and Rules, 1961, issued in terms of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933)," said the Sarb.
"Since financial surveillance is an important pillar of financial stability, the drafting of a document relating to a modernised policy and
legislative framework has already commenced. The broad strategy remains prudential management of foreign exposure risk, along with improved management of capital flows and maintaining macroeconomic and financial stability."
- I-Net Bridge