Crisis management

Abstract

In February 1983, a major change in exchange control was introduced in South Africa with the abolition of the financial rand and with non-residents being allowed to freely repatriate invested funds. In September 1983, a second change was introduced when gold mines were paid for their gold by the South African Reserve Bank in US dollars deposited in a foreign account, rather than in rands paid in South Africa.

In this editorial we look at the background to these moves and how they have affected South Africa's role in the global economy.