Who can buy and sell forex in South Africa?
The South African Reserve Bank offer two foreign exchange licences in South Africa to be able to buy and sell forex:
- Authorised Dealers
These are banks that are authorised by SARB to buy and sell forex in the form of international telegraphic transfers, forex cash, traveller's cheques or travel cards. These banks typically trade in all forms of forex and are members of the Swift network.
- Authorised Dealers with Limited Authority (ADLA)
ADLA's are typically Bureau de Changes authorised by SARB to deal in foreign currency cash, traveller's cheques or travel cards only. These ADLA's can buy and sell forex for travel related purposes.
There is a new ADLA licence that has recently been announced by SARB being that of a 'Money Transfer Operator'. Under this licence, money transfer companies are able to offer money transfers out of South Africa within certain limitations and restrictions.
Only the above licenced and approved foreign exchange companies are allowed to buy, sell and trade forex in South Africa.