South Africa's forex reserves shrink 0.4% m/m in July

By bne IntelliNews August 7, 2013

The foreign exchange reserves of the South African Reserve Bank (SARB) shrank by 0.4% m/m to USD 39.3bn as of end-July 2013, the bank said in a statement. This followed a 0.8% monthly decline in June, and a 4.5% drop in May, which was also the biggest monthly fall in more than four years.

SARB’s gold reserves jumped 10.4% m/m to USD 5.31bn at end-July, following a 15% monthly drop in June. SDR holdings edged up 0.6% m/m to USD 2.71bn after a 0.5% rise in the previous month.

The central bank’s total gross reserves widened by 0.7% m/m to USD 47.32bn, following a 2.4% decline in June. The bank explained the decline with valuation adjustments stemming from a significant increase in the US dollar gold price and the fluctuation of the USD against the major currencies.

South Africa’s international liquidity position rose 1.3% m/m to USD 45.18bn as of end-July, following a 1.8% fall in the previous month. The increase reflected the growth in gross reserves and the forward position (which represents SARB’s unsettled spot or swap transactions), which was partly offset by a decline in foreign currency deposits received.

SARB has been building foreign currency reserves to act as a buffer against currency volatility.

Related Articles

Russia's Rosneft sets foot in Mediterranean with $1.125bn Eni deal

Russia's largest oil producer state-controlled Rosneft has acquired 30% in the largest natural gas field in the Mediterranean from Italian Eni, the company announced on October 9. Rosneft that ... more

PetroSA, Rosgeo sign $400mn oil and gas exploration agreement for South Africa

South Africa's national oil company PetroSA and Rosgeo, the geological exploration company of the Russian Federation, have signed an agreement on a $400mn oil and gas development project in South ... more

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more