All pension funds, life insurers, CIS managers and discretionary financial services providers registered as an institutional investor with the Financial Surveillance Department are treated as institutional investors for exchange control purposes. Applicants must submit proof of registration with the Financial Sector Conduct Authority as well as a manually completed quarterly asset allocation report reflecting its assets under management as at the last quarter-end or as date of application to the Financial Surveillance Department.
Refer to section B. Until , foreign entities were not allowed to list on a South African exchange. The Minister of Finance announced in his Budget Speech that, to allow South African investors to obtain foreign exposure through domestic channels, entities would be permitted to list on a South African exchange. This dispensation was further expanded to include derivative instruments. Approved inward listed shares, including exchange traded funds as well as debt and derivative instruments, traded and settled in Rand on a South African exchange, are classified as domestic.
South African institutional investors, Authorised Dealers, South African companies, trusts, partnerships and private individuals as well as emigrants, subject to adhering to the emigration policy as outlined in section B. The entity must approach an Authorised Dealer with full details of the proposed transaction.
The department monitors exports to ensure that exporters repatriate the proceeds in compliance with Exchange Control Regulations 6, 10 and This data is compared with data on the flow of funds export proceeds , which Authorised Dealers report to the Financial Surveillance Department through the FinSurv Reporting System.
Payment is effected through an Authorised Dealer on presentation of a commercial invoice from the overseas supplier together with the SARS customs clearance documentation evidencing the receipt of the goods in South Africa. Authorised Dealers may provide foreign currency for advance payments on behalf of their clients to cover the cost of permissible imports against the presentation of an invoice.
These imports exclude capital goods. For payments exceeding R50 , the importer must present the customs clearance documentation to the Authorised Dealer once the goods have been cleared through SARS Customs as proof of the use of the foreign exchange and receipt of the goods in South Africa. ADLAs, including bureaux de change, are authorised by the Financial Surveillance Department to deal in certain designated foreign exchange transactions, including travel-related transactions.
The guidelines for submitting an application for authorisation to conduct the business of an ADLA can be found in section A. The minimum unimpaired capital requirement cannot be used as capital or working capital in the business of the ADLA. The interest earned on the requirement can be used for the business, but the capital requirement must remain unencumbered and may not be ceded, pledged or used as collateral by the ADLA or any of its stakeholders.
The SARB does not currently oversee, supervise or regulate crypto assets, which were previously referred to as virtual currencies, but is continuing to monitor this evolving area. Crypto assets are not legal tender in South Africa, so any merchant or beneficiary may refuse them as a means of payment. These assets are not guaranteed or backed by SARB as they operate independently from the central bank and users are alerted to the potential risk of fluctuation in the value of crypto assets.
There are currently no dedicated laws or regulations that specifically govern the use of crypto assets in South Africa and, therefore, no regulatory compliance requirements exist for local trading of these assets. Legal protection or recourse to users, traders or intermediaries of crypto assets therefore depends on general common law principles. Initial coin offerings are related to crypto assets and their use are also unregulated and unsupervised by the SARB.
Neither the Currency and Exchanges Manual for Authorised Dealers nor the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority allow for cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets.
From an exchange control perspective, the Financial Surveillance Department is unable to approve any transactions of this nature. R1 million or R10 million. This is regarded as a simulated transaction to circumvent the provisions of the Exchange Control Regulations and therefore an illegal activity. The Exchange Control Regulations prohibit transactions where capital or the right to capital is, without permission from National Treasury, directly or indirectly exported from South Africa.
This includes transactions where an individual purchases crypto assets in South Africa and uses them to externalise 'any right to capital'. Contravening these regulations is a criminal offence. This is because of the nature of the assets and because the transaction is currently not reportable on the FinSurv Reporting System.
Similarly, non-residents who have introduced crypto assets to South Africa for local sale will not be able to transfer the sale proceeds abroad. The applicable exchange control policy is outlined in section G. Kindly be advised that the Financial Surveillance Department cannot advise on how individuals or legal entities should comply with any other legislative requirements.
Individuals and legal entities should seek independent legal advice to ensure compliance with all applicable legal and regulatory requirements. The Intergovernmental Fintech Working Group IFWG , a committee of South African financial regulators, launched an Innovation Hub to promote responsible financial sector innovation and respond to changing market dynamics.
Kindly visit www. Innovation Hub users have access to three avenues for assistance:. The Regulatory Guidance Unit exists to help market innovators resolve specific questions regarding the policy landscape and regulatory requirements.
Regulators will continue to assist queries through digital and virtual means, however, due to the pandemic, response times may depend on the volume and complexity of queries and will be provided on a best effort basis. The Regulatory Sandbox provides financial sector innovators with an opportunity to test new products and services that push the boundaries of existing regulation, all under the responsible supervision of relevant regulators.
The Innovation Accelerator exists to provide a collaborative, exploratory environment for financial sector regulators to learn from and work with each other — and the broader financial sector ecosystem — on emerging innovations in the industry. There are three options for reporting suspicious activity or transactions to the SARB:. If possible, the following information should be included in the email:. For more information regarding the tip off line, click here.
South African residents who did not apply for exchange control relief under the expired Special Voluntary Disclosure Programme announced by the Minister of Finance during his Budget Speech and who now wish to settle contraventions of the Exchange Control Regulations must make a full disclosure to the Financial Surveillance Department. Anonymous applications will not be accepted.
The determination of the settlement will, inter alia, depend on whether the applicant elects to retain the funds abroad or repatriate them. All applications submitted to the department must be accompanied by a frank and verifiable affidavit disclosing all relevant facts and supported by suitable documentary evidence. The department may refuse an application for regularisation if the relevant contraventions are the subject of a current audit or investigation.
When evaluating these applications, the department will consider relevant factors that may include the circumstances and involvement of the applicant in the contravention, and the nature, extent and seriousness of the contraventions.
South African residents with unauthorised foreign assets who do not voluntarily approach the department for assistance may face the full force of the law. Where appropriate, the department is mandated to recover the full amount of the contravention. Online systems.
If you have further questions about the Frequently asked questions, please do not hesitate to contact us. Browser Update Recommended. Home What we do Financial Surveillance Frequently asked questions. All exchange control related matters must be addressed through an Authorised Dealer, which is a registered bank authorised to deal in foreign exchange or an Authorised Dealer in foreign exchange with limited authority. General information What are exchange controls?
What is the purpose of exchange controls? Exchange controls aim to: prevent the loss of foreign currency resources through the transfer abroad of real or financial capital assets held in South Africa; effectively control the movement of financial and real assets into and out of South Africa; and avoid interfering with the efficient operation of the commercial, industrial and financial system. What is an Authorised Dealer? What is an Authorised Dealer in foreign exchange with limited authority?
What is a Restricted Authorised Dealer? Are cross-border transactions reportable? How long does it take to receive a response to online queries and emails submitted to the Financial Surveillance Department? Individuals What is a single discretionary allowance?
What can be transferred under the single discretionary allowance? What rules apply to South African residents travelling abroad? Adult residents above 18 years old may use a travel allowance within the single discretionary allowance limit of R1 million per calendar year. Residents under 18 years old are permitted a travel allowance of up to R per calendar year. Foreign exchange, in terms of a travel allowance, may be provided in any authorised form.
Foreign currency for travel may not be bought more than 60 days prior to the departure of the traveller. Travellers may not use the foreign currency they purchase for any purpose other than stated or declared upon purchase. Travellers must convert unused foreign exchange to rand within 30 days of returning to South Africa. If a travel allowance was partly used, i.
The cost of land arrangements such as hotels, cruises and tours forms part of the travel allowance, but local payment of airfares does not. If the insured value of the item exceeds R , prior written approval from the Financial Surveillance Department through an Authorised Dealer is required.
If the items exported will not be returned to South Africa and their insurance value exceeds R50 , an application must be submitted to the Financial Surveillance Department through an Authorised Dealer. Travellers may also take cash rand notes up to the value of R25 per person. How much can an individual invest offshore? A taxpayer who is above 18 years old and in good standing can invest up to R10 million in their name outside the Common Monetary Area CMA , i.
A SARS tax compliance status verification result must be obtained and provided to an Authorised Dealer before the funds can be transferred offshore. In terms of funds being reinvested in the CMA countries thereby creating a loop structure or be reintroduced as a loan to a CMA resident, kindly refer to the points below. Resident individuals with authorised foreign assets may invest in South Africa, provided that where South African assets are acquired through an offshore structure loop structure , the investment is reported to an Authorised Dealer as and when the transaction s is finalised as well as, inter alia, the submission of an annual progress report to the Financial Surveillance Department via an Authorised Dealer.
Existing unauthorised loop structures i. In addition, up to R1 million per calendar year, within the single discretionary allowance per person, can be transferred abroad without the requirement to obtain a SARS tax compliance status verification result. What if I want to invest more than R10 million per calendar year?
A printed SARS tax compliance status verification result must accompany the application. Can a private individual open a bank account in South Africa denominated in foreign currency? What value of Krugerrand coins can be taken out of South Africa? What is the maximum amount of cash both rand and foreign currency that can be brought into South Africa?
Private individuals who cease to be residents for tax purposes the concept of emigration phased out with effect from The concept of emigration as recognised by the Financial Surveillance Department has now been phased out with effect from The Form MP b has been withdrawn with effect from I have been living abroad for a number of years. How do I cease to be a resident for tax purposes? What facilities will I qualify for when I cease to be a resident for tax purposes?
Authorised Dealers may allow the transfer of assets abroad provided a private individual has ceased to be a resident for tax purposes in South Africa, has obtained a TCS in respect of 'emigration' from SARS and is tax compliant upon verification of the TCS. Authorised Dealers may allow the transfer of up to a total amount of R10 million per calender year per private individual who ceases to be a resident for tax purposes in South Africa and is 18 years and older, provided that the above-mentioned conditions are met, including the submission of an applicable SARS TCS PIN for verification.
In general, the more economic growth a country produces, the more positive the economy is seen by international investors. Investment capital tends to flow to the countries that are believed to have good growth prospects and subsequently, good investment opportunities, which leads the country's exchange strengthening.
Also, a country that has higher interest rates through their government bonds tend to attract investment capital as foreign investors chase high yield opportunities. However, stable economic growth and attractive yields or interest rates are inexorably intertwined. Examples of significant news events include:. A stock exchange generally lists and trades in shares of a given country, so even when other stock markets are open internationally, they are largely trading in local securities and not the same exact stocks.
While there are foreign stocks listen in the U. Liquidity refers to how easy it is to quickly buy or sell securities for a fair price. On the other hand, in an illiquid market the spread between the bid and ask may be very wide and not very deep. I general, liquid currency pairs are those that are active and have high trading volume.
The most traded currencies in the world include the U. It is important to take advantage of market overlaps and keep a close eye on news releases when setting up a trading schedule. Traders looking to enhance profits should aim to trade during more volatile periods while monitoring the release of new economic data.
This balance allows part-time and full-time traders to set a schedule that gives them peace of mind, knowing that opportunities are not slipping away when they take their eyes off the markets or need to get a few hours of sleep. Bank for International Settlements. Bank of England. Kathy Lien. Day Trading. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Table of Contents. Forex Markets Hours of Operation. The Best Hours for Forex Trading.
Overlaps in Forex Trading Times. Impact of News Releases. The Bottom Line. Key Takeaways The forex market runs on the normal business hours of four different parts of the world and their respective time zones. The U. Why Is Forex Liquidity Important? Which Are the Most Liquid Currencies? Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Discussed below are the various characteristics of the foreign exchange market which differentiates it from other financial markets:. A forex market performs three significant operations which are explained in detail below:. The forex transactions which are executed immediately, or usually within two days, is known as the spot transaction.
Such a forex market is termed as a spot market, and the rate of exchange is called a spot rate. The market in which the exchange of currencies involve a future delivery and payment and the rate of exchange for the same is pre-determined is called a futures forex market. Such exchange rate is known as a future rate.
It protects the buyer from the risk of a rise in the value of the currency. A forward forex market is however very similar to the futures market, but here, the terms of the contract are negotiable and can be amended by any of the parties involved. A foreign exchange market is the largest global financial market which performs some crucial functions. The three of the primary functions of a forex market are as follows:. Let us now discuss the various benefits of the foreign exchange market:.
International Trade : Every country has its currency and therefore, to facilitate trade activities between two countries, the forex market is essential. Trading Option : For the speculators or traders, foreign exchange market is just like other financial markets where they can make money on short term fluctuations in the currencies. If the currency underlying a trade moves in a direction you were not expecting, leverage will greatly increase your potential losses.
To reduce the risk of losses, we advise you to adopt a strict trading style that includes the use of stop and limit orders. Stop Out Policy. As the stop out levels vary depending on the technology you are using, please read carefully before making any transactions on your account. Should you have any doubts regarding your stop out level, Swissquote representatives are available to assist. Total open position is USD ' Unless previously agreed, and subject to the limitations set forth in the General Terms and Conditions, the Risk Disclosure Statement and the Special Terms and Conditions for Forex, when the stop out level is reached Swissquote will apply a First In First Out FIFO liquidation policy realizing the oldest positions first until the margin level returns above the stop out level.
Please note that, in the case of aggregated positions exceeding the maximum transaction size on MetaTrader 5, such positions will first be liquidated up to the maximum transaction size. NOP Limits. The NOP limits are adjusted dynamically based on the size, leverage ratio and underlying currencies of the positions you take. Your NOP limits are updated upon execution of every placed order. Should an order exceed your NOP limits, its execution is rejected and it will be cancelled. Overview table on how the NOP limits are set.
Handling of corporate actions. The following corporate actions will cause your positions to be automatically closed on your behalf. We strongly recommend closing them before any such corporate action:. Find out more about our competitive pricing, low margin rates and flexible transaction sizes. What makes us better?
Superior Execution Our technological infrastructure, with trade servers in premium locations, ensures that you experience the lowest latency and fastest execution. Order Execution Policy Advanced Trader and MetaTrader offer different types of executions methods, so we recommend that your read this section carefully to choose the platform that is right for you. Advanced Trader Spot This order is filled or rejected at the requested Bid or Ask price for the full amount of the trade.
MetaTrader Instant Execution This order is executed or rejected at the requested Bid or Ask price for the full amount of the trade. Leverage Swissquote offers flexible leverage options. Comparison of leverage ratios and the minimum margin requirement expressed as a percentage: If leverage ratio is Then, the minimum required margin equals Handling of corporate actions The following corporate actions will cause your positions to be automatically closed on your behalf.
Get the full picture Find out more about our competitive pricing, low margin rates and flexible transaction sizes. Account types Find the right pricing and conditions for your trading volume.
The forex market runs on the normal business hours of four different parts of the world and their respective time zones. · The U.S./London markets overlap (8. Frequently asked questions and answers to all your forex transactions. At FNB we understand planning a trip abroad takes time and effort, therefore we. Can a private individual open a bank account in South Africa denominated in foreign currency? Yes. Private individuals resident in South Africa may open a.