The South African Reserve Bank’s reserves dropped to $45.8bn at the end of July, the lowest level since early 2011. The decline was partly due to a decline in the gold price and the US dollar’s appreciation against major currencies. According to NKC African Economics, current reserves can provide import cover for around five months, which is sufficient to ward off any payment problems. However, reserves will remain under pressure, which will somewhat undermine the value of the rand.
The South African Reserve Bank’s Headquarters in Pretoria