September gross reserves increase
Reserve Bank says growth was partly due to a foreign exchange short-term loan
SOUTH Africa’s gross reserves rose $1.54bn to $47.25bn in September, from $45.70bn in August, according to Reserve Bank data.The increase in gross reserves was partly due to a foreign exchange short-term loan the Bank took to facilitate certain transactions in the forex market as part of its operational responsibility, the Bank said in a statement.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. SA’s rating is due to come up for review in December.The international liquidity position (ILP) rose $1.2bn to $41.95bn in September from $40.80bn August.The increase in the international liquidity position was due to high level of gross reserves, the change in the foreign currency deposits received and the increase in the forward position.
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