SA’s gross foreign reserves fell $606m to $46.7bn in July, the South African Reserve Bank said in a statement on Monday. The Bank said the drop in gross reserves, which include gold and foreign exchange, was mainly the result of foreign exchange swaps that were conducted to boost liquidity. The central bank also said foreign exchange payments were made on behalf of the government during the review period. Foreign exchange reserves are an important indicator of a country’s ability to repay foreign debt in the short term and are used for currency defence. Reserves are also taken into account when determining a country’s credit rating. The international liquidity position was up $179m to $42.4bn, partly reflecting a change in the foreign currency deposits received.
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