New role for SARB in monitoring capital flows

A further relaxation in South Africa's exchange controls, announced this week, will change the South African Reserve Bank's role in overseeing capital flows.

The changes, announced by Trevor Manuel, the finance minister, in his budget speech, increases the amount of assets that pension funds and other institutional investors can invest abroad from 15% to 20%. Manuel also eased limits on how much banks and money managers can invest overseas.

The announcements mean that exchange controls will be