South Africa’s net foreign reserves rose to $74.88 billion at the end of January, up from $71.14 billion in December, strengthening the country’s external liquidity position, data released by the South African Reserve Bank (SARB) showed. The figures were highlighted in a report carried by Reuters.
Net foreign reserves reflect a country’s foreign currency and gold holdings after deducting short-term foreign liabilities. The January increase points to stronger foreign exchange inflows and improved reserve management compared with the previous month, the central bank’s data indicated, as cited by CNBC Africa.
The improvement was mirrored in gross foreign exchange reserves, a broader measure that includes gold, special drawing rights and foreign currency assets. Gross reserves also increased during the month, reinforcing South Africa’s buffer against external shocks, based on financial data tracked by Trading Economics.
Economists say a stronger reserve position helps support the rand, improves import cover and bolsters investor confidence, particularly amid global economic uncertainty. However, analysts note that sustaining reserve growth will depend on continued capital inflows, export performance and prudent monetary policy, as discussed in regional market commentary.
