Emerging Markets Rates and Currencies Handbook

South Africa (ZAR - South African Rand) Citi in South Africa • Branch of Citibank, N.A. Registered in New York. Citi South Africa is the largest foreign bank in South Africa by local assets. • 6th largest bank in South Africa with offices in Cape Town/Durban/Johannesburg (Head Office) with an additional 1200 collection points nationwide. • Previously in South Africa 1958 – 1987 and returned in 1995. • Full product offering in Corporate and Investment Bank, with the equities business conducted through Citigroup Global Markets. Market Overview The FX market is characterized by a flexible, free float exchange rate regime. The ZAR exchange rate is determined by market forces. The South African Reserve Bank (SARB) does not intervene in the FX market but may intervene, in line with prevailing Monetary and Exchange Rate Policy, in the market from time to time by purchasing or selling dollars to smooth out unduly large short-term fluctuations in money-market liquidity or the exchange rate. The Financial Sector Regulation Act 9 of 2017 (“FSRA”) establishes two regulators in the South African financial market: The Prudential Authority and the Financial Sector Conduct Authority. They issue standards to the market, sometimes jointly. CBNA South Africa also adheres to the standards of the FX Global Code. • South Africa accounts for 0.3% of the world’s daily foreign exchange market turnover and the ZAR is the 20th most traded currency in the world. • ZAR is deliverable and traded even in longer tenors, though the best liquidity is in tenors of 2 years or less. • The main currency pairs are USD/ZAR, EUR/ZAR and GBP/ZAR. 145