Ricochet News

SA net reserves down to $43.329 billion in September

Oct 7, 2014
SA net reserves down to $43.329 billion in September

South Africa's net gold and foreign exchange reserves dipped to $43.329 billion in September from $44.24 billion in August, data from the South African Reserve Bank (SARB) showed on Tuesday.

Gross reserves were also lower at $49.130 billion, while the forward position, which represents the central bank's unsettled or swap transactions, fell to $2.920 billion from $2.938 billion in August. 

Meanwhile, the Rand slipped against the dollar on the news. 

On Monday, the Rand had gained almost 1 percent as investors welcomed the appointment of a new reserve bank governor, Lesetja Kganyago.

Government bonds firmed in morning trade, with the yield on the benchmark paper due in 2026 down 1 basis point to 8.265 percent, reflecting a view among analysts that Kganyago will be tough on inflation.

The South African Chamber of Commerce and Industry releases its September business confidence index at 0930 GMT. The index recovered from a 15-year low in August after the end of strikes that battered the economy in the first half of the year.

However, economic indicators have continued to show subdued consumer and manufacturing activity, with a Reuters poll of economists expecting mining and manufacturing data out on Thursday to reveal a decline in production.

Pressure on the rand has also been applied by a strong dollar and signals from the U.S. Fed that it will raise interest rates in mid-2015.