CAPE TOWN: The Reserve Bank reported on Friday said that South Africa’s gold and foreign exchange reserves rose in April. Gross reserves, which include both gold and foreign exchange reserves, rose by $606m to $47bn in April, the Bank said on Friday. Gold and foreign exchange reserves help a country support its liabilities and meet foreign loan commitments, among other things.
The increase in gross reserves was mainly due to a weaker dollar, the maturing of foreign exchange swaps conducted for liquidity management purposes, and the increase in the dollar price of gold. The gold price was up 1.5% to $1,204/oz.
Foreign exchange reserves were up $486m to $39.678bn, while gold reserves rose $71m to $4.850bn. The international liquidity position (ILP) increased by $659m to $41.934bn, reflecting the increase in gross reserves and the change in the foreign currency deposit, which was offset by the decline in the forward position. Foreign currency deposits received rose by $121m to $7.743bn.
