SA'S TRADE reserve rose more than 15% in January, taking analysts by surprise. Although an increase had been expected the lower gold price was expected to hold it down.
Instead, foreign exchange reserves have climbed to R11,76bn. The windfall has come about mostly as the result increased foreign investment in the bond market.
The increase raises hopes of accelerated exchange control relaxations. SA exporters and importers can also look forward to a less volatile foreign currency market.
In his state of the nation address at the opening of parliament earlier this month, State President Nelson Mandela said SA would continue to dismantle exchange controls at a measured pace. The rise in foreign exchange reserves will bring this a step closer.
