SARB Publishes Draft Exchange Control Circulars Following Budget Reform Proposals

The Financial Surveillance Department of the South African Reserve Bank (SARB FinSurv) has issued a series of draft exchange control circulars on 3 March 2026 for public comment following reforms announced in the 2026 Budget.

Feedback on the draft exchange control circulars

Stakeholders have been invited to provide comments on the draft exchange control circulars by 17 March 2026 by sending an email to SARB-FinSurvDocuments@resbank.co.za, using the prescribed format.

After reviewing the submissions received, SARB FinSurv will consider the feedback before issuing final circulars and announcing the effective dates of the new measures.

Details of the Draft Exchange Control Circulars

The draft exchange control circulars propose several amendments to the current exchange control framework. The primary objective of the proposed changes is to modernise aspects of the regulatory system, increase certain transaction thresholds, and simplify administrative procedures relating to cross-border financial activities.

The draft exchange control circulars cover the following areas:

Single Discretionary Allowance (SDA)

One of the most notable amendments relates to the SDA. The current limit of R1 million per annum has been in place since 2015 and it is proposed that the limit increase to R2 million per annum. The SDA is available to South African resident individuals and South African resident individuals temporarily abroad. Prospective immigrants and immigrants who have applied for, but who have not yet received permanent residence, and foreign nationals may be granted a travel allowance within the SDA limit of R2 million per calendar year.

Over and above the limit of R2 million per annum, individuals can also apply to SARB FinSurv to avail of an SDA in excess of R2 million per annum for the transfer of current payments. Proof will have to be provided to SARB FinSurv of the bona fide nature and legitimacy of the transfer.

Travel Allowance (individuals under the age of 18)

The travel allowance available to individuals under the age of 18 are increased from R200 000 to R400 000 per annum.

Foreign Debit/Credit card payments

Another proposed change involves the limits applicable to foreign payments made using debit or credit cards for online purchases, digital services, and subscription payments. Under the draft proposals, the limit for such transactions is increased from R50 000 to R100 000 per transaction.

Miscellaneous Payments

The threshold for miscellaneous payments to non-residents, are increased from R100 000 to R200 000 per transaction.

Export of banknotes by travellers

The amount of South African banknotes that travellers i.e. South African resident individuals, foreign nationals and non-resident visitors, may take across the country’s borders are also increased significantly, from R25 000 to R100 000.  It is assumed that the increased limit will also be incorporated by Customs in their TC-01 Traveller Card Declaration.

Interest payable on inward foreign loans and trade finance facilities

SARB Finsurv has removed the previously prescribed interest rate cap on loans and trade finance facilities received by South African residents from non-resident parties. Authorised Dealers (banks) would be permitted to approve loans provided that the interest rate is considered market related. Loans involving related parties i.e., shareholder’s loans, are subject to SARS Interpretation Note No. 127 dated 17 January 2023 dealing with transfer pricing and interest limitation rules.

Merchanting Transactions

The settlement conditions for merchanting transactions have been streamlined, making provision for a four-month time lag between payment to the foreign supplier (seller) and receipt of funds from the foreign importer (buyer), replacing the various shorter timeframes that currently apply depending on the jurisdiction involved.

CFC accounts

In terms of this circular, Authorised Dealers are permitted to renew approvals for local settlement between South African residents in foreign currency through customer foreign currency (CFC) accounts. Provided that the underlying circumstances remain unchanged, such renewals would no longer need to be referred to SARB FinSurv for approval.  This excludes requests involving State Owned Entities.

Budget Announcements

Further to the above, it was also announced that the National Treasury intends to publish updated draft regulations to support the implementation of the proposed Capital Flow Management Framework.  Crypto assets will also form part of the Capital Flow Management Framework.

The South African Reserve Bank, the South African Revenue Serve and the Financial Intelligence Centre is collaborating to ensure that no money laundering, terrorist financing, proliferation financing and tax infringements occur.

Conclusion

The evolving nature of South Africa’s exchange control framework means that individuals, businesses, and financial institutions must remain vigilant and informed about regulatory developments. The recent draft circulars issued by SARB FinSurv highlight the ongoing efforts to modernise the exchange control system and adjust transaction limits and administrative processes.

Exchange Control Advisory Hub Pty Ltd (ECAH) continuously monitors developments issued by SARB FinSurv and National Treasury to ensure that our clients remain fully informed of any regulatory changes that may impact their cross-border transactions and exchange control compliance obligations.

If you would like to understand how these proposed reforms may affect your personal or corporate international transactions, or if you require assistance with exchange control approvals, or submissions to Authorised Dealers or SARB FinSurv, please contact ECAH. Our team is committed to providing practical guidance and ensuring that your transactions remain fully compliant with the latest exchange control requirements.