Although not unique to South Africa very few countries now operate a system of control (exchange control regulations) over money movement in and out of the country (currency exchange).
South Africa Exchange Control regulations ‘control’ the flow of money both in and out of South Africa. They effect every transaction, no matter what amount of rand gets transferred and who the sender or recipient of the money is.
The Reserve Bank of South Africa controls and oversees all capital in – and outflows. The Reserve Bank designates power to authorised dealers (banks) who oversee and regulate the market on their behalf.
Currency trading companies, such as ourselves, will trade via these authorised dealers, but due to the effect of bulking transfers, are able to offer better rates and do not have to charge money transfer service fees.