Treasury U-turn on offshore limits fuels policy confusion
Government suspends a Reserve Bank circular as rules on offshore investment limits remain
The Treasury, fresh from sparking fresh controversy over the latest SAA bailout, moved to ease confusion over a proposed change in offshore limits that was interpreted as an effective removal of exchange controls on some investment products.
On Tuesday, the government suspended a Reserve Bank circular from late October that had reclassified some inward-listed investments such as exchange traded funds as domestic, provided they were listed locally and traded in rand. This would have had the effect of sidestepping current rules limiting exposure to offshore funds to 30% and enabling investors to track international indices such as the S&P 500 index...