Net gold and forex reserves rise
According to Reserve Bank data, South Africa’s net gold and foreign exchange reserves have risen 0.2% month-on-month, up from from $40.826 billion in June to $40.901 billion in July. The central bank further noted that gross reserves fell 0.5%, from $46.366 billion to $46.157 billion, while the forward position edged up from $1.616 billion to $1.723 billion. According to Reuters, Nedbank’s Economic Unit said:
"The decline in gross reserves mainly reflected a sharp drop in foreign exchange reserves, which offset a modest increase in gold reserves over the month. The level of reserves is unlikely to change significantly in the short term as the Reserve Bank's ability to accumulate will be limited by high market volatility and unfavourable growth prospects."