Picture: REUTERS/JASON LEE
None Picture: REUTERS/JASON LEE

SA’s gross reserves, which include gold and foreign exchange, declined in October as the government settled its foreign currency payment and the dollar appreciated against other currencies.

Foreign exchange reserves are an important indicator of a country’s ability to repay foreign debt in the short term, and are one of the factors used to determine a country’s credit rating.

The Reserve Bank’s holdings of gross reserves declined by $228m to $50.17bn as at October 31, compared with $50.39bn at end-September, according to data on Wednesday.

During the review period, the dollar strengthened, on average, against the euro, pound and the rand, as well as against other currencies.

The international liquidity position fell by $33m to $42.19bn in October, from $42.23bn in September, with the Bank saying the drop partly reflects a drop in gross reserves.

mahlangua@businesslive.co.za