SA’s net reserves tick higher in June

South Africa’s gold and foreign exchange reserves edged higher in June due to valuation adjustments and repayment of foreign loans, the Reserve Bank says.

Net gold and foreign exchange reserves stood at $38,189 billion at the end of June from $37,928 billion in May, while gross reserves rose to $42,203 billion from $41,6 billion, the central bank said in a statement posted on its website.

“The change in gross reserves was mainly due to the normal foreign exchange operations of the bank, valuation adjustments and the repayment of foreign loans,” it said.

Foreign currency reserves went up $513 million to $34,596 billion while gold reserves increased by $88 million to $4,969 billion.

Analysts said the data showed the Reserve Bank had not aggressively intervened in the market in June, when the rand currency firmed only slightly against the dollar compared with the previous month.

“It’s not an aggressive move upwards (of reserves). If you look at the figure it’s what we expected,” said Efficient Group economist Freddie Mitchell.

“There can also be some speculation on the inflow from tourists coming in for the soccer,” he added, alluding to the month-long 2010 World Cup South Africa is hosting until July 11.