Going with the flow SA is not the first country to liberalise exchange controls and it won't be the last. Caution remains the theme Potential investors should be warned to remain prudent when exchange control is relaxed further, despite the caution now being exercised. Flexibility with a risk rating Hedge your funds More than 30 of the world's leading hedge fund experts will be in SA later this year for the 1997 Financial Mail International Hedge Fund Symposium. Local estate agencies are preparing to help those taking the plunge. But economists urge caution.
Golden rules forreducing risk For a cross-border investor, currency risk is paramount.
Once a decision has been made to invest offshore and potential returns on the investment are calculated, possible losses or gains to be made on the currency is the next important calculation. Though it has until now been illegal for SA residents to trade in foreign investment products, it has been possible over the Internet for many years. With the partial lifting of exchange controls, local and international brokerage and mutual fund firms will offer an increasing variety of online overseas investments. But don't expect an immediate deluge of punters.