gross basis as and when instructions are received by the system. 5. the financial globalisation process the implementation of sound monetary policies and the establishment of a sound and well - managed banking sector, effective financial markets, and an efficient national payment, clearing and settlement system, were regarded as important preconditions for the extension of south africa ’ s participation in the process of financial globalisation. as a further important element of the process, south africa is also removing exchange controls on a gradual and structured basis. there are, at this stage, no more exchange controls on any current account transactions ; all controls were removed on non - residents who are now free to bring funds into south africa and to repatriate funds for any purpose ; restrictions on residents to make investments outside of the country have been eased for corporates, institutional investors and private individuals, who may make foreign investments within fairly generous prescribed limits. these limits are being raised gradually until they will become ineffective. the south african approach on financial globalisation is that it is in the interest of the country to have access to foreign funds, and that we must therefore apply domestic financial and other macroeconomic policies that will make the country attractive to the foreign investor. furthermore, policies in south africa must be flexible enough to adjust quickly and decisively to changes in foreign investor sentiment. when capital inflows subside, or switch into outflows, as a minimum : n n n n the exchange rate must be allowed to absorb part of the shock ; an outflow of capital must reduce liquidity in the banking sector ; interest rates must be allowed to rise ; and some inflationary pressures will develop that will require, almost immediately, more restrictive monetary and fiscal policies. these adjustments will obviously not be painless, but will provide a basis for re - establishing confidence in the shortest possible time.

benoit cœure : interview in kathimerini interview with mr benoit cœure, member of the executive board of the european central bank, in kathimerini, conducted by ms eirini chrysolora and published on 5 september 2018. * * * does the completion of the programme mark a new era for greece in your view? is enhanced surveillance not just a continuation of the programme? let me start by saying that it would be all too easy to take the opportunity of greece graduating from the programme to turn the page and say “ mission accomplished ”. the programme years have been very difficult for the greek people. policymakers across europe have a duty to learn the lessons of this painful journey and improve policy, at both european and national levels. with hindsight, one can argue that the design of the programmes could have been more effective in supporting social safety nets and combating rent - seeking, that the pace of reform of the financial sector could have been faster, and that the need for debt reduction was overlooked by creditors. all this has gradually improved over time. i would like to congratulate the greek government for its remarkable work in recent years, implementing key reforms in the economy and the society in general and in the financial sector in particular. for example, social solidarity income helps direct scarce resources to those who need them most, and opening up industries or sectors, such as pharmacies, benefits households which have borne the brunt of crisis adjustment. regarding the financial sector more specifically, the new legislative framework provides much better support for reducing non - performing loans ( npls ) compared with the situation a couple of years ago. this will help banks support economic growth and job creation more effectively. but let ’ s not forget where it all started. never again should a euro area country end up in such an unsustainable position as greece ’ s in 2010. we need responsible national fiscal and economic policies, and a better euro area governance framework. as for enhanced surveillance, it is not a new programme but rather a strengthened form of cooperation between greece, the european institutions and the euro area countries to support the transition towards full market access. make no mistake, the burden of gaining the trust of markets and depositors has now fully shifted to the greek government. don ’ t expect building trust among investors to be easier than convincing the institutions. what will be the ecb ’ s role in the context of enhanced surveillance? will you provide your contribution as in the past