‘The current period of rand strength against major currencies such as the US dollar can create a valuable window for South Africans who are planning ahead,’ says Tracy Afonso, Executive: Private and Wealth at Nedbank.
South Africans are increasingly looking beyond local borders for study, work, business and investment opportunities. Whether you’re planning to study abroad, grow a business with global reach, travel more frequently or invest internationally, one thing is essential: a simple, secure way to move and manage money across currencies. This is where foreign exchange (forex) becomes a powerful enabler.
‘International offerings, including foreign exchange, are not just for professional traders,’ says Afonso ‘Forex connects your money to the world, enabling you to pay university fees abroad, cover suppliers, fund travel or manage export-related costs. It also plays an important role in protecting wealth by giving access to stronger global currencies such as the US dollar, euro and pound.’
Why forex matters right now
The current period of rand strength against major currencies such as the US dollar can create a valuable window for South Africans who are planning ahead. When the rand is stronger, foreign currency becomes relatively
Step 1: Open a foreign currency account
One of the most accessible ways to enter the global financial system is by opening a foreign currency account (FCA). An FCA enables you to hold funds in major currencies, including USD, GBP, EUR, AUD, CAD, HKD, JPY and ILS.
Opening an FCA helps you:
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transact in the currency you’ll need abroad;
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diversify savings into stronger currencies;
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manage exposure to rand volatility;
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save for future international expenses;
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earn monthly interest, depending on currency, market conditions and pricing
considerations; and -
begin global financial planning without immediately moving money offshore.
The process is quick and fully digital. At Nedbank, for example, the digitisation of foreign currency account onboarding (including the ability to open and manage an FCA account through digital platforms), reflects a broader focus on removing friction from complex financial decisions, enabling clients to engage with global opportunities more efficiently.
Step 2: Fund your FCA flexibly
Once the account has been opened, you can transfer money through the Money app from your rand account into the currency of the account you have opened. It’s important to note that the annual discretionary allowance is limited to R1 million before SARS approval is required. Transfers of up to R10 million can be made under the foreign investment allowance, provided you have a valid SARS Tax Compliance Status PIN.
With this flexibility you can build offshore exposure gradually through regular contributions or opportunistic transfers when exchange rates are favourable rather than trying to time the market perfectly.
Why an FCA matters for young professionals
For professionals building their financial futures, an FCA is a practical starting point. It allows you to save in stable foreign currencies, plan for global opportunities and create a buffer against currency volatility without committing to a full offshore investment structure too early.
With digital access, interest-earning potential and the ability to hold multiple currencies, an FCA enables you to think globally while managing your finances locally.
Going further with a Focus Account
For clients expanding their international footprint, offshore banking is becoming increasingly flexible and accessible. With accounts such as Nedbank’s Focus Account (with presence in the Isle of Man, London or Jersey), clients can now hold up to 15 currencies, access global investment opportunities and transact in USD, GBP or EUR using a Platinum Visa Debit Card. This evolution empowers clients to confidently navigate global markets.
With specialist banker support, the Focus Account is suited to professionals studying abroad, working internationally or actively building offshore investment strategies.
Preparing today for tomorrow’s opportunities
‘Diversifying globally doesn’t mean abandoning South Africa – it means protecting your future,’ says Afonso. ‘Even small amounts saved offshore can provide resilience when local conditions are challenging.’
By setting up the right accounts and engaging with your banker early, you can be ready to act when global opportunities arise. Speak to your private banker or wealth manager to explore how an FCA or a Focus Account can support your international goals.