Foreign exchange controls are various forms of controls imposed by a government on the purchase and sale of foreign currencies by residents or on the purchase or sale of local currency by non-residents.
Such controls used to be common in most countries, chiefly poorer ones, until the 1990s when free trade and globalisation started a trend towards economic liberalisation.
Today, countries such as South Africa which still impose exchange controls are the exception rather than the rule.
The Money Show’s Bruce Whitfield interviewed Andrew Hannington, CEO of Grant Thornton Johannesburg, about the reasons why it’s time to completely abolish exchange controls.
Scroll down for quotes from the audio below.
I don’t think there are even 100 000 people in South Africa with enough money that remaining exchange controls matter to them. For most people exchange controls mean nothing.— Andrew Hannington
Many African countries have abandoned exchange controls to good effect.— Andrew Hannington
The ultra-rich will invest in South Africa if they are free to move their money in and out.— Andrew Hannington
We need to open up South Africa to Foreign Direct Investment. The money must flow in and out.— Andrew Hannington