 The Exchange Control System under ApartheidEconomic History of Developing Regions, 2014, vol. 29, issue 2, 268-286 Abstract: Exchange controls were part of a complex system of maintaining some financial stability during apartheid, particularly as the apartheid economic system began to implode, and the macroeconomy deteriorated. The centrepiece of the system was a complex system of multiple exchange rates, with residents and non-resident transactions taking place under different currency regimes, creating at different periods a 'blocked rand', a 'securities rand', a 'commercial rand' and a 'financial rand'. Exchange controls appear to have assisted the apartheid regime to maintain macroeconomic stability despite other poor policy choices. However, measured in terms of monetary independence and exchange-rate stability, even this was a mixed success. Much like apartheid itself, short-term economic benefits came with severe long-term political, social and economic distortions. Twenty years later, some of the distortions remain, and, indeed, some of the controls. This highlights the need for ongoing reforms to make the post-apartheid South African economy less distorted and more competitive, and to continue to develop a modernized system for managing external risks. Date: 2014 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rehdxx:v:29:y:2014:i:2:p:268-286 Ordering information: This journal article can be ordered from DOI: 10.1080/20780389.2014.955276 Access Statistics for this article Economic History of Developing Regions is currently edited by Alex Klein and Alfonso Herranz-Loncan More articles in Economic History of Developing Regions from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.