Finance Minister cuts Forex Controls - 2nd Nov 2009
In his first midterm budget speech the new Minister of Finance, Pravin Gordhan, surprised with announcing some cuts on current forex controls.Among others the most important ones are the increase of the foreign investment allowance for South Africans from R 2m to R 4m, the possibility for South African companies to open bank accounts outside South Africa and the abolishment of the R 250 000 limit on advance payments for imports.
Gordhan chose this time in order to weaken the Rand to a more "competitive" level and hence to strengthen the exports. In consequence the Rand fell 8% against major currencies: Mission accomplished, Minister!
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