Medium term budget: Easing of Exchange Controls
See the following announcement released from Reserve Bank, including SA companies now being allowed to open foreign bank accounts and not being required to repatriate earned forex within 180 days anymore. They also talk generally about updating the investment framework and encouraging SA companies to go international. Seems good things may be afoot.
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Replies to This Discussion
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Permalink Reply by Sean Nieuwoudt on -
Good things a head indeed!
This is great news!
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Permalink Reply by Marcel Boast on
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Does this bare well for PayPal? Can we now use PayPal to receive payments for internet transactions?
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Permalink Reply by Justin Stanford on -
It's unclear right now, I'm waiting for an interpretation from our expert at 4Di. SARB is also due to make some more detailed announcements. It certainly would seem to start paving the way though at first glance...
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Permalink Reply by Chris Calitz on -
Surely because companies can now open foreign bank account you should also be able in theory to withdraw fund from PayPal into these foreign accounts if PayPal supports this in the country the Bank account is opened in?
Let hope this is the case as the online market in SA would benefit greatly from this!
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Permalink Reply by Marc Privett on -
Let's hope that they will also allow South African based websites to transact online legally in international currencies such as US$ without having to open up international entities and bank accounts in the first place. If we could get South African payment gateways to provide international currency options then trade would be so much easier.
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Permalink Reply by Diaan Mynhardt on -
These are all listed under the heading "Proposed Reforms" in the PDF. Any ideas on when the proposed reforms will become actual reforms?
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Permalink Reply by Stephen Tredrea on -
Fantastic news!
This raises some questions... perhaps a discussion that highlights questions and proposes solutions will facilitate banks and payment gateways supporting this to our greatest mutual benefit.
1. For receiving on-line credit card payments in a foreign currency, would the merchant require a separate account for each currency accepted? And if so, would they require a separate merchant account for each currency? Ideally, as a merchant, I'd like to be able to receive all my local and foreign currency receipts through one merchant account, even if they land up in separate currency accounts.
2. For making payments, would a holder of a foreign currency account be able to make foreign currency payments from that account? Ideally, as a local business holder of foreign currency, I would prefer not to have to first convert to Rands what would be immediately reconverted back into the foreign currency to make a payment. Double conversion like this costs.
Could anyone shed any light on these as it currently stands? What other questions are there to be considered? What other intermediaries, in addition to banks and payment gateways, would need to join this conversation?
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Permalink Reply by Garth Michel on -
From what I understand, what this has basically made it easier for South Africans to do business overseas by allowing them to easily open offshore accounts. When doing business with a company in another country, they simply make payment to that account (directly or via paypal). It's then on the South African company to bring the money back to SA (which you're still required to do, but you don't have to do it within the 180 days anymore).
Its a big step in the right direction. I'm just worried about companies paying tax twice, bringing the money into the country again when the tax is done for the company.
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