MONDAY, 9.00AM
TREVOR MANUEL’S finance department has approached the major commercial banks for their views on the lifting of exchange controls and on capital requirements. The department wants commercial banks to buy and sell government bonds rather than the Reserve Bank, but has set conditions, such as a willingness by the banks to buy and sell at all times, and an investment by foreign banks of at least R1-billion.
Foreign banks such as JP Morgan and Goldman Sachs have announced an interest in a local market, but the local banks fear being swamped by foreign competition.
The banks have also been invited to discuss what kind of foreign investments they may be interested in to hedge their exposure in local markets — which marks a new government willingness to consider offshore deals.