part of the proceeds from such issues for financing the expansion of their activities in the rest of the world. south african institutional investors, such as insurers and pension funds, were allowed to exchange part of their rand - denominated portfolios for foreign - currency denominated assets through swap transactions entered into with foreign counterparts. in accordance with the principle of relaxing exchange controls, permission was granted in june 1995 to south african institutional investors ( long - term insurers, pension funds and unit trusts ) to exchange, through approved asset swap transactions, part of their south african portfolio for foreign securities. in march 1997 it was announced that institutions that qualified for asset swaps would be broadened to include regulated fund managers registered with the financial services board. with effect from july 1997, portfolio managers registered with the financial services board as well as stockbroking firms which are members of either the johannesburg stock exchange, the bond exchange of south africa or the south african futures exchange, could also apply to acquire foreign portfolio investments by way of asset swaps. integration into the world financial markets required a major restructuring of the institutional arrangements in the south african capital markets. the johannesburg stock exchange ( jse ) introduced changes to provide for corporate ownership, foreign ownership of stockbrokerage firms, dual capacity trading, negotiated commissions, and electronic screen trading. the jse is continuing to improve its facilities by providing for the immobilisation and dematerialisation of shares, and for improved clearing and settlement arrangements. the total value of shares traded on the jse increased from r63 billion in 1995 to r448 billion in 1999. the most spectacular increase in volumes over the past few years took place in the bond exchange of south africa. total turnover in this market increased from r2 trillion in 1995 to r8, 8 trillion in 1999. the relaxation of south african exchange controls made an important contribution to the development of the bond exchange and transactions by non - residents in this market have increased significantly. the adjustments that have occurred in the south african economy, and on south african monetary policies during the past few years, were necessary and timely. these adjustments were needed to restore and maintain overall economic equilibrium. south africa has increasingly developed robust financial, economic and foreign exchange markets. this latter market is growing rapidly and its daily average turnover now exceeds $ 9 billion. another interesting development following the globalisation process is the emergence of a euro - rand market. the outstanding nominal amount of rand - denominated loans raised

the peripheral countries such as portugal, is positive. the recovery in the eurozone economy is, however frail overall. the most recent imf forecast for eurozone growth was revised downward to – 0. 6 per cent, with a weaker recovery, than previously forecasted in 2014. the japanese economy recorded strong growth in the first quarter of 4. 1 per cent, which has since been revised to 3. 8 per cent. growth, however moderated in the second quarter to 2. 6 per cent, ( quarter - on - quarter saar ). the growth in japan is underpinned by strong consumer spending and exports and although the economic growth is stronger than in the more recent past in response to the stimulus measures undertaken, it remains too early to conclude on the sustained success and the efficacy of the various stimulus measures that were adopted. the july consumer confidence index fell by 0. 7 per cent to 43. 6 per cent and the proposed increase in the sales taxation is expected to act as a drag on growth. bis central bankers ’ speeches growth in developing countries, for some time the mainstay of the world economy, is also slowing and contributing to the recent downward revision of global growth by the imf in the order of 0. 2 per cent to 3. 1 per cent and 3. 8 per cent for 2013 and 2014, respectively. in the immediate future, emerging market economies will have to balance possible capital outflows related to tapering with weaker currencies, rising inflationary pressures and underlying imbalances. domestic economic developments south africa ’ s economic performance is closely aligned to international economic developments due to the openness of our economy. domestic economic growth has been disappointing, with the bank recently lowering its growth projection for 2013 and 2014 to 2. 0 per cent and 3. 3 per cent, respectively. the bank projects growth to accelerate to 3. 6 per cent in 2015, but we assess the risk to the growth outlook to be on the down side in the light of the further delays in overcoming the electricity supply constraints, relatively weak business and consumer confidence levels and possible labour market developments. the low growth in real gross fixed capital formation, which had moderated from an annualised 4. 3 per cent in the fourth quarter of 2012 to 2. 5 per cent in the first quarter of 2013, is seen as one of the factors that underlie the weak economic growth outlook. growth in capital outlays by private business enterprise slowed for the first time since the fourth