S.Africa net reserves down on strong dollar

JOHANNESBURG, Dec 7 – South Africa’s international liquidity position fell more than expected in November as gross reserves decreased on a stronger dollar against major currencies, causing a decline in foreign currency reserves.

The central bank said on Wednesday net gold and foreign exchange reserves fell to $48.633 billion in November from $49.221 billion in October, also as the forward position of the bank declines.

A Reuters poll showed the market was expecting net reserves to fall to $49.05 billion in October.

Analysts don’t believe the bank was actively accumulating reserves in November as that would increase the volatility of the rand.

 

Source: Reuters Africa newsletter

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