Cape Town - South Africa needs to increase its accumulation of foreign reserves which are currently far below those of peers like Brazil and China, reserve bank governor Gill Marcus said on Wednesday.
"The need to accumulate these reserves has been driven by the need to reduce our vulnerability to sudden large outflows of capital, something which is regarded as a real risk given the policy decisions likely to be taken by the Federal Reserve in the near future," Marcus told parliament's finance committee.
The local economy has about $50bn in reserves, compared with slightly below $400bn for Brazil and China's $3.5trn.
"The need to accumulate these reserves has been driven by the need to reduce our vulnerability to sudden large outflows of capital, something which is regarded as a real risk given the policy decisions likely to be taken by the Federal Reserve in the near future," Marcus told parliament's finance committee.
The local economy has about $50bn in reserves, compared with slightly below $400bn for Brazil and China's $3.5trn.