Lack of Exchange Controls Offer Investor Confidence
The key reason Hong Kong is among the world’s largest financial centres is that it doesn’t have any currency controls. You can freely send money to and from Hong Kong and there are no limits. The lack of exchange controls, provides investors with confidence that their money is secure and safe, and can be quickly accessed as needed.
In contrast, investing in countries with exchange controls adds a huge layer of risk and complexity. South Africa Exchange Control regulations ‘control’ the flow of money both in and out of South Africa. They affect every transaction, no matter what amount of rand gets transferred and who the sender or recipient of the money is. Permissible reasons for transfers abroad are limited to:
- Monetary gifts and loans.
- Donations to missionaries.
- Maintenance transfers.
- Travel allowance.
- Study allowance.
- R 1 million foreign capital allowance.
- R10 million individual capital allowance.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2