SA assets abroad surpass inflows


For the first time ever recorded, the rand's slump led to the value of South African assets abroad surpassing foreign investment into the country.

The Reserve Bank said:

"The volatility and decline in domestic and global equity markets as well as the significant decline in the end-of-period exchange rate of the rand resulted in a respective modest decline in foreign liabilities and a substantial increase in South Africa's foreign assets,"

In a statement on its website, the Central Bank said that the difference between South African foreign assets and liabilities swung to a surplus of R113 billion at the end of September, from a deficit of R131 billion at the end of June. According to Bloomberg, this is the first positive reading since the Pretoria-based bank began recording data some six decades ago.

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