Midweek Personal Finance has been receiving reports that some banks have been attempting to use their status as authorised dealers in foreign currency to unfairly force customers to place savings in their offshore investment products.
In other words, when some people have asked their banks to complete the required banking formalities for the R200 000 offshore investment allowance introduced on July 1 for an investment product with another non-banking institution, the response of the bank has been to refuse to complete the formalities required by the Reserve Bank unless the customer invests in its offshore investment product.
Eric Pike, general manager in charge of exchange control at the Reserve Bank, says authorised foreign exchange dealers are appointed by the Minister of Finance but may only buy and sell foreign currency under conditions laid down by the Reserve Bank's Exchange Control Department. Within these parameters those authorised in foreign exchange may or may not make foreign exchange available.
Pike says there are a number of authorised dealers and you are not restricted in your choice.
His advice is "shop around".
You can also open a foreign currency account at your bank and then deal with the funds in any manner you wish without reference to the bank.