SA Reserves Fall Slightly Due To Dip In Forex And Gold Price

THEBE MABANGA

SOUTH Africa’s gross reserves fell by 2.4% to $54 420 million in September compared to the August, data from the Reserve Bank showed on Wednesday.

The fall was mainly due to a drop in foreign exchange reserves, and a fall in gold reserves caused by a 4.2 % fall in the gold price over the month

In rand value, gross reserves fell by 1.6% to R916.4 billion, also due to lower foreign exchange reserves, which outweigh the impact of a weaker rand.

The rand depreciated marginally by 0.8% against the US dollar during the month, according to the bank.

The bank also reported that import cover provided by reserves increased to around 12 months, meaning South Africa can import wat it requires at current prices for a bout a year without generating income.

Import cover was enhanced because the value of imports was limited by lockdown measures, locally