/ 23 May 1997

Reserve Bank mops up R4,8-billion to keep rates up

FRIDAY, 10.30AM

THE Reserve Bank has mopped up about R4,8-billion which entered the money market as a result of the sale of a stake in Telkom to a US/Malaysian consortium.

The Telkom sale brought about $1,2-billion into the country, prompting the Bank action to prevent a fall in interest rates. According to Reserve Bank governor Dr Chris Stals, the Bank sold R1-billion in government stock from its own protfolio and sold an additional R800-million of stock on government’s behalf to prop up the exchaquer’s cash balances. These sales were over and above government’s normal funding, which runs at about R2,6-billion a month. Stals added that the Bank also carried out R3-billion in asset swaps, with short maturities which will expire at month’s end, when the money market usually tightens.

BUSINESS BRIEFS

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