TUESDAY, 11.00AM:
GROSS foreign reserves in August rose by R3,1-billion to R25,9-billion over July’s R22,8-billion, the Reserve Bank announced on Monday evening.
The gross figure was higher than expected by market analysts, but was somewhat offset by increased foreign borrowings, with about R5,9-billion in foreign credit lines used in August against July’s R3,2-billion.
The fact that the groos reserves figure also included the $500-million raised in government’s Yankee bond issue in June, suggests that net reserves in August may have fallen. Analysts believe the Reserve Bank’s intervention to prop up the rand on currency markets may have been the culprit that ate into the Bank’s reserves.
Transfers by individuals into foreign currency accounts fell in August to R131-million, from July’s total of R144-million.
The Reserve Bank will release more detailed reserves figures later this week.