Opinion The Reserve Bank’s new Capital Flow Management Framework - more questions than answers?

The Reserve Bank’s new Capital Flow Management Framework – more questions than answers?

Subsequent to the 2020 Budget Speech and the announcement of a shift from negative exchange controls to a capital flow management system to regulate cross-border capital flows, the Financial Surveillance Department of the South African Reserve Bank (“FinSurv”) issued Circular No. 2/2020 (“the Circular”) outlining in (marginally) more detail the proposed capital flow management measures…