SA gold and forex reserves drop to $46.7bn

Cape Town - As at July 31, South Africa's official gross gold and foreign exchange reserves decreased by $606m to $46.7bn, while the international liquidity position increased by $179m to $42.4bn, the South African Reserve Bank said in a statement on Monday.

The drop in the gross reserves mainly reflects the foreign exchange swaps conducted for liquidity management purposes and the foreign exchange payments made on behalf of the government. The decrease was partially offset by the uptick in the US dollar gold price and the weaker dollar against most currencies.

The increase in the international liquidity position is due to the change in the foreign currency deposits received and the increase in the forward position, which was substantially offset by the decrease in the gross reserves, said the Reserve Bank.