Exchange Control Liberalisation in South Africa

abolition of controls approach argued asset swap balance of payments Bank would want Bank's big bang Budget Information Service business community capital account liberalisation capital flight controls on non-residents controls on residents countries current account deficit Department of Finance destabilising direct investment abroad economic growth exchange control liberalisation exchange rate appreciations experience of Mexico exports financial rand mechanism flows foreign assets foreign capital foreign exchange reserves foreign investment higher interest rates hold assets abroad HOOVER INSTITUTION IDASA IDASA's Public Information inflation International Monetary Fund Liberalisation in South lifting of controls long-term capital macroeconomic moves towards liberalisation net capital outflows non-resident capital phased Possible impacts Public Information Centre R5 billion rand to depreciate real exchange rate reform process reimposition relaxation of controls result reversal Sacob scenarios for exchange short-term capital South Africa sudden sustained basis sustained increase sustained inflows term capital tion unlikely World Bank worth of imports