In the 1998/1999 Budget Speech additional exchange control liberalisations and relaxations were announced by the Minister of Finance.Further progress has again been made with the phasing out of exchange controls particularly those controls applicable to South African resident private individuals. In terms of the investment allowance of R200 000 introduced on 1 July 1997 an amount of approximately R793 million had been utilised as at the end of February 1998. Private individuals were also permitted to retain foreign income. Corporates have since 1995 been permitted to invest a total of R42 billion in foreign countries funded by way of share placements abroad and offshore borrowings. These investments will significantly enhance the flow of foreign exchange earnings to South Africa. Institutional investors have now made significant portfolio investments abroad under the asset swap mechanism. From July 1995 asset swaps totalling R77 billion have been approved of which some R38 billion have been transacted. Important measures which have already been implemented to ease exchange control include:-the transfer from South Africa of up to R30 million per new investment project in foreign countries and R50 million in SADC. This included allowing corporates investing abroad the ability to raise offshore financing based on the strength of their local balance sheets to finance more costly investments;further increases in the limit on foreign portfolio investment holdings by South African institutions. The qualifying institutions were broadened to include regulated fund managers;the virtual abolition of all remaining quantitative limits on current account transactions;a change in the Regulation governing the retention of foreign currency earnings e.g. from exports, from seven to thirty days;relief in respect of non-resident controlled organisations to borrow domestically by raising the threshold at which such restrictions become applicable from 25% to 50% non-resident ownership;the licensing of foreign exchange bureaux;the ability of non-residents of the CMA to maintain foreign currency denominated deposits with South African banks;the abolition of separate travel allowances for neighbouring countries and other foreign countries;the establishment of United States Dollar/South African Rand futures contracts through the South African Futures Exchange for non-residents and Authorised Dealers in foreign exchange;the raising of the minimum threshold for the completion of Forms A and E for foreign exchange transactions from R2 000 to R40 000;the removal of controls on the amount of foreign exchange holdings by Authorised Dealers;the marketing by South African gold producers of their output to approved counter parties. Further steps announced in the 1998/99 Budget SpeechIn considering further exchange control liberalisations a number of important factors have been taken into account:-purchases of South AFrican bonds and shares by non-residents totalled R41 billion in 1997, more than double the cumulative inflows for the previous three years of R17 billion;the gross gold and foreign exchange reserves of the South African Reserve Bank increased from R10.3 billion in December 1996 to R30.9 billion in February 1998;the net oversold forward position of the South African Reserve Bank improved from US$ 22 billion in December 1996 to US$ 14 billion as at the end of February 1998;the effects of the East Asian crises on world-wide capital and trade flows.The new relaxations are:Current account transactionsSouth African residents travelling abroad will now be allowed a maximum of R100 000 per person of twelve years and older and R30 000 per child under the age of twelve years, per calendar year. While the requirement to complete a Form M.P.928 by individuals wishing to utilise their credit cards for foreign travel purposes is abolished, the South African Reserve Bank will continue to monitor actual transactions to ensure that travel allowances are not exceeded.Further administrative reforms affecting current account transactions will also be introduced