A significant milestone was reached at the end of last year when the rand was included in the Continuous Linked Settlement (CLS) system – currently being one of only 15 currencies settling through CLS.
It is now possible to make a payment here in South Africa and have it immediately transferred to a beneficiary abroad in one of the other 14 currencies’ areas without the risks attached to delay in settlement. The sustained capital inflows into the country have allowed for a continued build-up of the official foreign reserves and have contributed to increased exchange rate stability.