The Reserve Bank is gradually reducing its participation in the market, and is now in the process of encouraging the development of a more active market in forward foreign exchange outside of the central bank. The average daily turnover in the South African market for foreign exchange over the past six months amounted to US $ billion.
The policy of the Reserve Bank is to continue to encourage the development of the financial markets, and to monitor these markets on a regular basis. The central bank itself, however, is reducing its own direct participation in the market-making processes. This applies to the market for foreign exchange and also the capital market.