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
EFCC arrests ex-NNPCL official and previous Warri managing director
Nigeria’s Economic and Financial Crimes Commission (EFCC) has arrested a former CFO of the Nigerian National Petroleum Co. Ltd (NNPCL), as well as a former managing director of 125,000 barrels per ... more
Fitch warns Ghana’s reserves at risk if gold prices plunge amid global geopolitical shifts
A sharp fall in global gold prices, now sitting above a record-high $3,300 per ounce, could rapidly erode Ghana’s international reserves and trigger fresh economic instability, ... more
Ghana’s debt-laden oil refinery TOR faces $517mn burden amid IMF reclassifications
Ghana’s state-owned Tema Oil Refinery (TOR) is grappling with a ballooning debt of $517mn, its management has revealed, attributing the liability to a mix of trade arrears, legacy obligations, and ... more