Gordhan eases exchange controls

BBSA

BBSA

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Pretoria - Finance Minister Pravin Gordhan's Medium-Term Budget Policy Statement (MTBPS) on Tuesday unveiled steps to ease exchange controls, which go a long way towards addressing complaints of businesses and individuals that government has been dragging its heels.

The foreign capital allowance for SA resident individuals, last adjusted in 2006, has been doubled from R2m to R4m, and the single discretionary allowance raised from R500 000 to R750 000 (the discretionary allowance refers to matters such as gifts to foreign recipients, and travel).

The lifting of the foreign investment limit to R4m is long overdue. However, many commentators have been agitating for all limits on individuals to be scrapped, because the exchange control amnesty allowed some people to keep more than R4m offshore.
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Link

So if I understand it correctly you can now take R4m with you if you want to leave this crime ridden country?
(Of Cause if you have that kind of money)
 
3G4me said:
Do you have to pay extra tax on the 4million if you take it out? Or do you mean you just need a clean bill of health from sars?:)
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Just a clean bill of health AFAIK. Obviously if you earn interest overseas on the money you take etc you'll have to declare that.
 
Syndyre said:
Just a clean bill of health AFAIK. Obviously if you earn interest overseas on the money you take etc you'll have to declare that.
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Thanks! Good to know;)

I wonder if they think they will get more forex inflow from this decision? I think more people will get their money out?
 
3G4me said:
Thanks! Good to know;)

I wonder if they think they will get more forex inflow from this decision? I think more people will get their money out?
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I'm not an accountant so I may be very wrong. :D They want a weaker rand so this is one way to achieve it I suppose. If you're non-resident you don't currently face any forex controls AFAIK. People probably will take more money out but there aren't that many people in SA that have >R2M to take overseas anyway so it probably won't have a major impact. Its a good move anyway, in line with the gradual liberalisation they've been following so far.
 
If you were taking money out of SA, what country would you put it into and what kind of investment?

Any investing boffins around?

I was thinking an Australian bank with some in unit trusts and some in a savings account(not much interest but thinking the rand will devalue) post 2010. Not planning to move to Oz tho...
 
3G4me said:
If you were taking money out of SA, what country would you put it into and what kind of investment?

Any investing boffins around?

I was thinking an Australian bank with some in unit trusts and some in a savings account(not much interest but thinking the rand will devalue) post 2010. Not planning to move to Oz tho...
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It all depends on your risk profile and whether you plan to emigrate somewhere at some stage etc.
 
3G4me said:
Do you reckon Oz would be a safe bet for investment tho?
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I haven't looked into it, can't claim that I know much about it but as a country in general it probably wouldn't be a bad option. The AUD's also a commodity currency though so it would probably tend to move in a similar direction to the Rand in some respects, although obviously not always. If you're looking at keeping your money in cash or something close to it Aus interest rates'll be higher than the UK, US etc.
 
Syndyre said:
I haven't looked into it, can't claim that I know much about it but as a country in general it probably wouldn't be a bad option. The AUD's also a commodity currency though so it would probably tend to move in a similar direction to the Rand in some respects, although obviously not always. If you're looking at keeping your money in cash or something close to it Aus interest rates'll be higher than the UK, US etc.
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Thanks again!

We really don't want to have to leave SA, but if push comes to shove, we don't want to be left to lock the door on our way out. So our thinking is if we get some cash out now, when the rand is still strong, the worst that can happen is you bring it back if things turn out ok, as long as we invest it wisely. And I know everything is risky, I just want the least risky options that give some kind of acceptable return.

My concern is with the banks overseas in the different countries and the different investments available. ANZ bank seems very stable, one of the top 10 in the world. So that covers the "bit in a savings account". More tricky to know which investment company is the most trusted over there.

But you confirmed my thinking so thank you. Guess we cant really lose if we are careful, just may not make a killing...:o
 
3G4me said:
Thanks again!

We really don't want to have to leave SA, but if push comes to shove, we don't want to be left to lock the door on our way out. So our thinking is if we get some cash out now, when the rand is still strong, the worst that can happen is you bring it back if things turn out ok, as long as we invest it wisely. And I know everything is risky, I just want the least risky options that give some kind of acceptable return.

My concern is with the banks overseas in the different countries and the different investments available. ANZ bank seems very stable, one of the top 10 in the world. So that covers the "bit in a savings account". More tricky to know which investment company is the most trusted over there.

But you confirmed my thinking so thank you. Guess we cant really lose if we are careful, just may not make a killing...:o
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You can always lose. :D If you take the money out now though when the Rand's still strong you're definitely in a better position though. Too many people start panicking when the Rand gets weak and only take money out then, then the Rand strengthens and they're much worse off, at least in Rand terms.
 
:D
Syndyre said:
You can always lose. :D If you take the money out now though when the Rand's still strong you're definitely in a better position though. Too many people start panicking when the Rand gets weak and only take money out then, then the Rand strengthens and they're much worse off, at least in Rand terms.
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Wow!! I hate losing!:D

But I think I will win peace of mind if I get some cash overseas, rather than bank on Zuma and Malema coming to their senses... that's a huge risk?

Hopefully I will choose the right options. Thanks again for your input... It's people like you that sa will miss once you leave huh?:(
 
3G4me said:
:D

Wow!! I hate losing!:D

But I think I will win peace of mind if I get some cash overseas, rather than bank on Zuma and Malema coming to their senses... that's a huge risk?

Hopefully I will choose the right options. Thanks again for your input... It's people like you that sa will miss once you leave huh?:(
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That's the kind of risk that's hard to quantify too, that's the problem.
 
Syndyre said:
That's the kind of risk that's hard to quantify too, that's the problem.
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I agree!

But rather than sit here in limbo hoping for the best, I would rather try to create my "back door" so to speak. Sad tho, isn't it?
 
3G4me said:
I agree!

But rather than sit here in limbo hoping for the best, I would rather try to create my "back door" so to speak. Sad tho, isn't it?
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Its sad but its better to be prepared I suppose. Hope for the best, prepare for the worst.
 
Syndyre said:
Just a clean bill of health AFAIK. Obviously if you earn interest overseas on the money you take etc you'll have to declare that.
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Yip, clean bill of health. Why tell them in the first place, what they don't know wont hurt you :D
 
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