$750m World Bank loan will be used for dollar commitments only, Treasury says
Funds won’t be converted into rand because of the costs involved, and will be kept in Treasury’s forex account with the Reserve Bank to be used in line with liquidity requirements
01 February 2022 - 13:19
Treasury will use the $750m loan approved by the World Bank last month to meet its dollar-denominated commitments so that costs can be prudently managed, a senior Treasury official said on Tuesday.
Treasury rarely converts funding provided in dollars into rand because of the associated costs, Duncan Pieterse, the head of Treasury’s asset and liability management division, told MPs on Tuesday. An exception was 2021 due to pressures on the fiscus as a result of the Covid-19 pandemic, “but we do not intend doing it this year”...
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