Forex reserves rise in April

Johannesburg - The South African Reserve Bank’s (SARB’s) dollar-denominated holdings of gold and foreign assets rose by $298m to $50.307bn in April‚ from $50.009bn in March‚ data released by the bank on Wednesday showed.

Foreign exchange reserves were up $811m to $41.698bn from $40.887bn‚ while gold reserves shed $536m to $5.910bn from $6.446bn in March.

The international liquidity position fell by $250m to $45.834bn from $46.084bn in March.

In April‚ the gross gold and foreign exchange reserves increased by $298m‚ while the international liquidity position (ILP) decreased by $250m and $50.3m and $45.8bn‚ respectively.

The Reserve Bank noted that the increase in the gross reserves reflected valuation adjustments emanating from the depreciation of the US dollar against other major currencies as well as maturing foreign exchange swaps conducted for liquidity management‚ which was substantially offset by a decrease in the market price of gold.

The decline in the ILP reflected the decrease in the forward position due to maturing swaps‚ which was partially offset by increases in the gross reserves and the foreign currency deposit received.