16 December 2005
	MONEY MOVES A M Bruce-Brand, head: exchange control department, SA Reserve Bank.

I refer to "Breaking the chains of a siege economy" (Editorials November 18) to correct a few inaccuracies. The R750 000 individuals may take out of SA is a one-off, not annual, allowance. Exporters must repatriate export earnings within 30 days of accrual, but may then credit such proceeds to the customer foreign currency (CFC) account with their SA bankers for 180 days more. Only after that must the currency be converted to rand. While standing to the credit of the CFC account such foreign currency may, alternatively, be used to pay for imports. You say the controls "expressly deter FDI, particularly the ability to repatriate profits". Profits (or dividends) due to a nonresident investor are freely transferable abroad without prior approval. For the record, inward FDI and the transfer of the sale proceeds to the foreign investor needs no exchange control approval.