Foreign exchange controls are the various forms of controls imposed by the government on the:

• purchase or sale of foreign currencies by residents
• purchase or sale of local currency by non-residents

The South African Reserve Bank (SARB) has appointed Bidvest Bank as an Authorised Dealer in foreign exchange. An Authorised Dealer's function is to assist the SARB's Exchange Control division in administering exchange control to South African residents and businesses.

Full applications to the SARB's Exchange Control division need to be made through an Authorised Dealer like Bidvest Bank.

Exchange control services for individuals

• South African residents over the age of 18 years qualify for a Single Discretionary Allowance of up to R1 million per annum. Residents under the age of 18 qualify for an annual allowance of R200 000. This covers gifts, travel and maintenance.

• Foreign exchange can be purchased up to 60 days prior to date of travel.

• Individual clients of Bidvest Bank can now book their foreign exchange up to six months in advance by taking out a Dynamic Hedging contract.

• Bidvest Bank sells and purchases Chinese Yuan. South African residents over the age of 18 years also qualify for an Investment Allowance of R4 million per annum, subject to a tax clearance certificate for investment purposes, form MP 1423 (bank form) and a green barcoded identity document.

• Individuals can also purchase property in an overseas country up to any Rand value without affecting your private individual investment allowance. This is subject to an application process to the South African Reserve Bank.

• A single emigrant qualifies for a R4 million ‘settling-in’ allowance and R8 million per family unit. A family unit is defined as a single parent with children. This process is also subject to an application being submitted to the South African Reserve Bank.

• Students living abroad for legitimate full-time studies can also benefit from an annual study allowance equivalent to the Rand amounts of the Single Discretionary Allowance referred to above.

• Individuals can pay an amount of up to R50 000 for overseas family celebrations (weddings; christenings; and barmitzvahs etc) without affecting any of the allowances referred to above.

To qualify to transfer the individual annual R4 million investment allowance, the following documentation must be supplied to Bidvest Bank:

A copy of the individual’s green bar-coded Identity Document

A SARS tax clearance certificate for investment purposes
To be awarded this certificate, the application for it needs to be submitted by the client directly to SARS.
Refer to the Essentials and Tools section for the SARS application form.

A completed copy of the SARS Investment Allowance control sheet.
Refer to the Essentials and Tools section for the SARS Investment Allowance Control Sheet

Find out more