Statement on the Gold and Foreign Exchange Reserves of the Bank
Last Modified Date:
2020-10-08, 02:04 PM
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Information notice on the official gold and foreign exchange reserves of theSouth African Reserve Bank as at 31 December 2009 This notice provides detail of the US dollar equivalent of the level of the South African Reserve Bank’s official gold and foreign exchange reserves, Special Drawing Rights (SDR), foreign deposits received from customers and the level of outstanding foreign loans published today in the Bank’s Statement of Assets and Liabilities as at 31 December 2009. It also presents the level of foreign exchange forward and international liquidity positions as at the same date. As at31 December 2009(million) As at30 November 2009(million) Change(3) (million)Gold reserves (1)US$4 438US$4 695-US$257SDR holdingsUS$2 793US$2 880-US$87Foreign exchange reservesUS$32 475US$32 914-US$439Gross reservesUS$39 706US$40 489-US$783Foreign loans-US$350-US$350US$0Foreign deposits received-US$396-US$491US$96Forward position (2)US$0-US$60US$60International liquidity position(Net reserves) US$38 960US$39 587-US$627EUR/US$ exchange rateGBP/US$ exchange rateUS$/ZAR exchange rateSDR/US$ exchange rateMarket gold price (1)Statutory gold priceUS$1.44245US$1.61505R7.3800US$1.56199US$1 105.60R8 159.328US$1.50285US$1.64940R7.4300US$1.61044US$1 169.70R8 690.871 The gross gold and foreign exchange reserves decreased to US$39,7 billion and the international liquidity position to US$39,0 billion at the end of December 2009. The change in the gold and foreign exchange reserves was the net result of the Bank’s foreign exchange operations and downward valuation adjustments. Due to the diversified nature of the foreign exchange reserves, significant valuation changes are experienced when exchange rate movements become more volatile. Such volatility was experienced in December with the USD appreciating against various currencies including the EUR, GBP and SDR. This resulted in downward adjustments in non-USD denominated reserve holdings (when these are expressed in USD). Besides the decline in the value of foreign exchange reserves, the value of gold reserves also declined owing to a lower gold price. Foreign deposits received declined as a result of withdrawals by the Government to meet its foreign exchange obligations. 1 Gold in US dollar terms is reflected at mid-market rates. For reporting purposes all foreign currency figures have been converted to US dollar at mid-market rates at month end.2 The forward position comprises unsettled foreign currency spot transactions.3 Figures might not add up due to rounding.