What exchange controls mean for your overseas travel plans
If you're going overseas, one thing you'll need to sort out before you go is foreign currency.
You'll need to buy foreign currency before you head off. But thanks to exchange controls in place in SA, there are a few rules you have to adhere to.
Let's take a closer look…
What are exchange controls?
give a government a way to control money coming in and out of the country.
In South Africa, the South African Reserve Bank oversees exchange controls. Exchange controls apply to all South Africans residents.
Exchange controls affect how you take money overseas…
The impact of exchange controls on buying foreign currencies
The South African Reserve Bank has strict regulations in place governing the buying and selling of foreign currencies.
Unlike residents in other countries, like the UK and Europe who can buy and sell foreign currencies whenever they wish, you need to be aware of the exchange controls in place.
As a South African resident, you can take up to R1 million out of SA each year. This includes buying foreign currencies for overseas trips.
Buying and selling foreign currencies
Before going on your trip, you can only buy foreign currency up to 60 days before you leave. When you buy foreign currency, you must present your flight ticket.
If you have foreign currency left over once you arrive home, you have just 30 days to convert it back to rands.
You can also take R25,000 in cash on your trip.
Whilst you’re on your trip, spending money on your credit card also contributes as part of your annual allowance.
So there you have it. What exchange controls mean for your overseas travel plans.