The exchange control amnesty and the repatriation of foreign capital 2003–2005

Abstract

South Africa's economic history has been characterised in part by marked fluctuations in the position on the balance of payments. This was vividly illustrated by the turnaround in the external accounts in 2002 and beyond, after a lean two decades or so in which the country's economic performance had been adversely affected by recurring balance of payments problems. This favourable shift in turn created new opportunities for the authorities, and was reflected in part in new initiatives on the balance of payments front. In this regard the national budget that was presented by Finance Minister, Trevor Manuel, on 26 February 2003, incorporated some significant moves that accelerated the process of progressively liberalising the long-standing exchange control regime. The move away from the old financial regime was speeded up by starting to release blocked rand balances held by emigrants from South Africa, and by introducing an exchange control and tax amnesty for residents.