South Africa received more than $2-billion in funds from the International Monetary Fund (IMF) in August, central bank data showed on Monday, driving its net reserves up 6,49% to $36,922-billion.
The IMF transferred $2,166-billion to Africa’s biggest economy as part of a special drawing rights equivalent of $250-billion earmarked for member countries to help deal with the global economic crisis.
The Reserve Bank said in a statement on its website that net reserves, known as the net liquidity position, climbed from $34,67-billion in July.
Gross reserves were at $37,953-billion in August from $35,747-billion, with foreign currency holdings leaping $2,158-billion to $34,156-billion.
”The change in gold and foreign exchange reserves was mainly due to the general allocation of SDR 1,385-billion from the IMF, foreign exchange operations of the Bank and valuation adjustments,” the central bank said.
The IMF money is allocated to member countries according to their quota, which is based on its relative size in the world economy. South Africa’s quota is SDR 1,868-billion.
Analysts said the data showed the bank did not intervene in the market to boost reserves itself despite the rand currency remaining relatively strong against the dollar.
”Suffice to say that if you exclude the SDR there has been very little in terms of intervention,” Gerorge Glynos, managing director of market analysts ETM, said.
The rand was marginally weaker at 7,64 to the dollar at 07.00GMT from before the data was released, just off a 13-month high hit late on Friday.
The IMF agreed to disburse the funds after central banks in some countries pumped money into banking systems and markets to boost liquidity at the height of the financial crisis.
South Africa has not had to intervene to support local banks, which remained relatively stable through the turmoil, although the currency weakened sharply in late 2008 and equity markets fell, slowing the build up of reserves.
The central bank has been steadily building up holdings over the past five years after it brought a long-standing negative position into balance in 2004, but gross reserves still lag those in other emerging economies. — Reuters