Reserve Bank buying less bonds as the market stabilises
The ‘strong’ 10.6% increase in the level of reserves means SA has enough to cover 9.8 months of imports, up from 8.8 months in June
The SA Reserve Bank increased its holdings of government bonds at a slower pace in July, taking up just less than R2.5bn, through the bond-buying programme launched to smooth the functioning of the local market.
The slower take up began in June, when the Bank reduced its purchases of government securities to about half those bought in previous months. The Bank has said this was due to an improvement in market conditions.