It’s Official! SARB Publishes Exchange Control Circulars implementing the 2026 Budget Reform Proposals

The Financial Surveillance Department of the South African Reserve Bank (SARB FinSurv) has issued Exchange Control Circulars 6 to 14 on 8 April 2026, giving effect to the reforms announced in the 2026 Budget

Details of the Exchange Control Circulars

Following consideration of comments received from stakeholders on the draft circulars published in early March 2026, SARB FinSurv has now formally released the final Exchange Control Circulars, which became effective on 8 April 2026. The Currency and Exchanges Manuals for Authorised Dealers and Authorised Dealers with Limited Authority have also been updated to incorporate these changes.

The circulars introduce a number of important amendments across various aspects of the exchange control framework.

Single Discretionary Allowance (SDA)

The annual limit, which has remained at R1 million since 2015, has been increased to R2 million per calendar year as per Exchange Control Circular 6/2026. The SDA is available to South African resident individuals, including those temporarily abroad. In addition, prospective immigrants and foreign nationals may be granted a travel allowance within this limit.

Provision has also been made for individuals to apply to SARB FinSurv for transfers in excess of R2 million, subject to appropriate motivation and supporting documentation confirming the bona fide nature of the transaction.

The SDA may, inter alia, be utilised for participation in offshore share schemes, the transfer of domestic listed securities abroad, and the acquisition of foreign shares arising from rights issues.

Travel Allowance (individuals under the age of 18)

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

Export of banknotes by travellers

Exchange Control Circular 8/2026 introduces an increase in the export limit of South African banknotes by travellers. The permissible amount has been raised from R25 000 to R100 000 for South African residents, foreign nationals, and non-resident visitors.   

Merchanting Transactions

Exchange Control Circular 10/2026 addresses merchanting transactions by streamlining settlement conditions. A standardised four-month period is now permitted between payment to the foreign supplier and receipt of funds from the foreign buyer, replacing the previously fragmented timeframes applicable to different jurisdictions.

Miscellaneous Payments

In terms of Exchange Control Circular 11/2026, the threshold for miscellaneous payments to non-residents has been increased from R100 000 to R200 000 per transaction. This includes refunds to non-resident related parties, provided that such transactions comply with applicable transfer pricing requirements.

Foreign Debit/Credit card payments

In terms of Exchange Control Circular 12/2026, the limit applicable to foreign payments made using debit or credit cards for online purchases (imports), digital services and subscriptions has been increased from R50 000 to R100 000 per transaction.

CFC accounts

Exchange Control Circular 13/2026 introduces an administrative relaxation in respect of customer foreign currency (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 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.

Interest payable on inward foreign loans and trade finance facilities

Of particular significance is Exchange Control Circular 14/2026, which removes the previously prescribed interest rate cap on new inward foreign loans and trade finance facilities. Authorised Dealers may now approve such facilities, provided that the interest rate is market related.

However, loans involving related parties remain subject to the transfer pricing provisions contained in SARS Interpretation Note No. 127 dated 17 January 2023.

It is important to note that any increases in interest rates on existing loans must still be referred to SARB FinSurv for approval.

Conclusion

These developments reflect the continued evolution and modernisation of South Africa’s exchange control framework. Individuals, corporates, and financial institutions are required to remain informed and responsive to these regulatory changes to ensure ongoing compliance.

Exchange Control Advisory Hub (Pty) Ltd continues to monitor all developments issued by SARB FinSurv and National Treasury to ensure that clients remain fully apprised of regulatory changes that may impact their cross-border transactions. Should you require assistance in understanding the implications of these reforms, or support with exchange control approvals and submissions to Authorised Dealers or SARB FinSurv, we remain available to provide practical and tailored guidance.