What this page covers
The Reserve Bank holds reserves for settlement and for confidence, not to manage the exchange rate. South Africa has floated the rand freely since 2000 and does not intervene to defend a level.
| Measure | Approximate level | What it is |
|---|---|---|
| Gross reserves | About USD 65 billion | Total foreign assets held |
| Net reserves | About USD 62 billion | Gross less short-term foreign liabilities |
| Gold holdings | About 125 tonnes | Valued at market |
| Import cover | About 5 months | Months of imports the reserves could fund |
| SDR holdings | About USD 6 billion | IMF special drawing rights |
| Reason | Explanation |
|---|---|
| The rand floats freely | Since March 2000, with inflation targeting |
| Reserves are modest | Small against daily rand turnover |
| Intervention rarely works | A determined market outlasts a central bank |
| The mandate is inflation | Not a level for the currency |
| Reserves are built opportunistically | Bought when the rand is strong, not to defend it |
| Event | Effect |
|---|---|
| A weaker rand | Raises the rand value of the reserves |
| A higher gold price | Raises the value of the gold holding |
| IMF allocations | Adds to SDR holdings |
| Government foreign borrowing | Adds temporarily |
| Opportunistic purchases | Adds gradually, when conditions allow |
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Every table on this page as a spreadsheet, with the source and the date it was checked in the header rows.
⬇ Download CSVHow these figures work
The figures on this page come from the body that publishes them and change on a schedule rather than continuously, which is what makes them worth keeping in one place. The Gold and Foreign Exchange Contingency Reserve Account holds the accumulated gains and losses on the reserves. Its balance is a valuation effect, not spendable money.
Import cover of about five months is adequate by conventional measures but modest for an emerging market with an open capital account.
★ What this means in practice
Anyone expecting the Reserve Bank to step in and stop a rand selloff is expecting something it has not done in more than two decades.
✕ Common mistakes
- The Gold and Foreign Exchange Contingency Reserve Account holds the accu. The Gold and Foreign Exchange Contingency Reserve Account holds the accumulated gains and losses on the reserves. Its balance is a valuation effect, not spendable money.
- Import cover of about five months is adequate by conventional measures b. Import cover of about five months is adequate by conventional measures but modest for an emerging market with an open capital account.
- Anyone expecting the Reserve Bank to step in and stop a rand selloff is . Anyone expecting the Reserve Bank to step in and stop a rand selloff is expecting something it has not done in more than two decades.
- Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.
Notes on reading these figures
- The Gold and Foreign Exchange Contingency Reserve Account holds the accumulated gains and losses on the reserves. Its balance is a valuation effect, not spendable money.
- Import cover of about five months is adequate by conventional measures but modest for an emerging market with an open capital account.
- Anyone expecting the Reserve Bank to step in and stop a rand selloff is expecting something it has not done in more than two decades.
To put these figures to work, The Rand Exchange Rate History runs the arithmetic on your own numbers; Exchange Control Allowances covers the same ground in ordinary language; Why is the rand weak? goes into the detail this table only summarises; SARB Repo Rate History is the related figure worth reading beside it; and Balance of Payments covers what this page leaves out.
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Frequently asked questions
Does the Reserve Bank defend the rand?
No. The rand has floated freely since 2000 and the Bank's mandate is inflation, not an exchange rate level.
How large are the reserves?
About USD 65 billion gross, which is roughly five months of import cover.
What is GFECRA?
The Gold and Foreign Exchange Contingency Reserve Account, which holds accumulated valuation gains and losses on the reserves.
Why does a weaker rand raise the reserves?
They are held in foreign currency, so their rand value rises when the rand falls.
Is five months of import cover enough?
Adequate by conventional measures, but modest for an emerging market with an open capital account.
Would the Bank ever intervene?
It buys reserves opportunistically when the rand is strong, which is different from defending a level.