Reserve Bank: Financial Surveillance Department

As part of ongoing reforms, the Minister of Finance previously announced the shift from exchange controls to a system of prudential regulation by replacing unnecessary administrative controls with improved surveillance and prudential limits on foreign exposure risks. In line with the gradual change in the functions and responsibilities of the Exchange Control Department, the Minister of Finance also announced that the name of the department will be changed to the Financial Surveillance Department. This name change will be effective as from 02 August 2010.

At this stage, the change does not affect the application of the Exchange Control Regulations, Orders and Rules, 1961, issued in terms of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933).

Since financial surveillance is an important pillar of financial stability, the drafting of a document relating to a modernised policy and legislative framework has already commenced. The broad strategy remains prudential management of foreign exposure risk, along with improved management of capital flows and maintaining macroeconomic and financial stability.