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Definition

The foreign exchange (forex) market. This is the cash or "spot" market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international network of dealers. Often abbreviated to "forex". Forex is part of the country's reserves. The other part is gold. Together they make up total reserves and according to IMF recommendations, this should not be less than 3 months worth of national exports. It should be noted that South Africans are not permitted to trade in forex or to speculate against the rand. On 1st October 2020 the Business Day reported that running a web-based platform which allows forex trading is illegal in terms of the Financial Advisory and Intermediary Services Act (FAIS - 37 of 2002).

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