South Africa’s Foreign Reserves Slip to US$75.4 Billion
SOUTH AFRICA · RESERVES
Key Facts
- —The country Africa’s most industrialised economy and the world’s top platinum producer.
- —What happened Gross reserves fell to US$75.43 billion, missing a US$77 billion forecast.
- —The numbers Down from US$75.95 billion; net reserves fell to US$72.26 billion.
- —The reason Gold fell 6.1% in September; a World Bank loan softened the hit.
- —What it means for you Reserves are still US$5.69 billion higher than a year earlier.
- —Still open October figures arrive in early November; gold has slipped slightly since.
A lower gold price and payments for the government outweighed a US$1.5 billion World Bank loan, leaving South Africa’s reserves below forecast.
South Africa’s foreign reserves fell to US$75.43 billion at end-September, the South African Reserve Bank (SARB) said on Wednesday, 7 October. The figure was down from US$75.95 billion in August and below the roughly US$77 billion that economic calendars had forecast.
The numbers matter beyond Pretoria because reserves are the dollar cushion behind the rand, one of the most actively traded emerging-market currencies. A weaker US-dollar gold price did most of the damage, while a World Bank loan to the government kept the decline small.
What the Central Bank Reported
The SARB is South Africa’s central bank, based in Pretoria and led by Governor Lesetja Kganyago. It publishes its gold and foreign-exchange position early each month in a short information notice.
That notice put gross reserves at US$75.43 billion on Wednesday, 30 September, against US$75.95 billion on Monday, 31 August. The fall of US$525 million equals less than 1% of the total.
Measured in local currency, gross reserves actually rose to about 1.24 trillion rand (US$75.43 billion), because the rand weakened during the month. Rand and dollar values here are the SARB’s own figures.
Gold holdings were valued at US$16.90 billion, down US$1.10 billion in a month. Foreign-exchange reserves rose US$610 million to US$51.87 billion.
Special Drawing Rights, a reserve asset issued by the International Monetary Fund (IMF), slipped US$40 million to US$6.66 billion. Those three pieces make up the gross total.
Why South Africa’s Foreign Reserves Fell
The SARB named three causes: the lower US-dollar gold price, valuation changes in currencies and assets, and payments made for the government. The bank said a US$1.5 billion World Bank loan, received on behalf of the National Treasury, “largely offset” those effects.
Gold did the heaviest lifting. The SARB’s market gold price fell 6.09% over the month, from US$4,458.99 to US$4,187.51 an ounce.
The value of the bank’s gold fell by almost exactly the same share. That suggests the physical gold stock did not change and the drop was a pure price effect.
Currency moves added to the pressure, according to the notice. The euro lost 2.10% against the dollar and sterling 1.88%, trimming the US$ value of holdings in those currencies.
The dollar rose 1.75% against the rand over the month, to 16.39 rand per US$ at the end of September. A weaker rand is what pushed the local-currency value of reserves higher.
Gross Versus Net Reserves
The SARB also reports the international liquidity position, a net measure. It subtracts foreign-currency deposits the bank holds for others and adds its forward currency contracts.
That net figure fell US$1.43 billion to US$72.26 billion, nearly three times the drop in gross reserves. The gap shows how the World Bank money was booked.
Foreign-currency deposits, which include the National Treasury’s foreign loans and dollar purchases, rose US$925 million to US$3.76 billion. In other words, the loan sits on the government’s account, not the central bank’s.
On a simple calculation, gross reserves would have fallen by about US$2 billion without the loan. The SARB itself did not publish that figure.
The Loan and the Longer Trend
The National Treasury, South Africa’s finance ministry, announced the signing of the US$1.5 billion development policy loan on Tuesday, 21 July. It runs 15 years with a three-year grace period.
The Treasury said the loan supports reforms in electricity, freight and water. It added that the loan, with other multilateral money, covered its US$3.2 billion foreign-currency borrowing need for 2026/27.
Even after September’s dip, gross reserves sit US$5.69 billion above their level a year earlier, when they stood at US$69.74 billion. They remain below February’s peak of US$81.06 billion, the highest in SARB dollar data going back to 1998.
The release came a day after the SARB’s Monetary Policy Review, which Business Day said saw inflation risks “tilted to the upside”. According to the paper, the review warned that a marked rand fall would lift imported inflation.
The SARB’s policy rate stood at 7.25% on Wednesday, its website shows. Consumer inflation was 4.4% in August, against a 3% target with a one-point band either side.
What It Means for US Readers
For US investors, reserves are a gauge of how well South Africa can absorb shocks to the rand and pay foreign debts. A monthly move below 1% of the stock is small by that yardstick.
The loan has a direct American link. The World Bank is based in Washington, and the United States is its largest shareholder.
The Treasury said the loan pays six-month SOFR, a US dollar benchmark based on New York Fed data, plus 1.35 percentage points. Higher US interest rates therefore raise South Africa’s cost of servicing it.
The gold price fall also weighs on South African gold miners, several of which have shares traded in New York. The SARB’s official rate on Wednesday, 7 October, was 16.61 rand per US$, weaker than at month-end.
What Is Not Known
The SARB did not say how much it paid out on the government’s behalf in September. It also did not split the valuation effect between currency moves and asset prices.
It is not known how long the Treasury will keep the World Bank money on deposit at the central bank. Spending it would lower future gross figures but leave the net measure largely unchanged.
The US$77 billion forecast came from economic calendars, not from the SARB. It is unclear what gold price assumption lay behind it.
What Comes Next
The SARB will publish its October reserve position in early November. Gold has started the month slightly weaker: the London price reported by the SARB averaged US$4,156.65 an ounce on Tuesday, 6 October.
If that level holds, gold will again weigh on the dollar value of reserves. The September fall does not mean the SARB sold gold or ran short of dollars.
Frequently Asked Questions
What are South Africa’s foreign reserves?
They are the gold, foreign currencies and IMF Special Drawing Rights held by the South African Reserve Bank. At the end of September they totalled US$75.43 billion.
Why did the reserves fall in September?
The central bank cited a lower dollar gold price, currency and asset valuation changes, and payments for the government. A US$1.5 billion World Bank loan largely offset those effects.
What is the difference between gross and net reserves?
Gross reserves count everything the bank holds, including deposits it keeps for the government. The net measure, the international liquidity position, excludes those deposits and fell to US$72.26 billion.
Is the fall a sign of stress for the rand?
The monthly fall was under 1% of total reserves, which remain US$5.69 billion above a year earlier. The rand did weaken in September, to 16.39 per US$ from 16.11, central bank data show.
When is the next reserves release?
The South African Reserve Bank publishes its reserve position early each month. The October figures are due in early November.
Sources: South African Reserve Bank, information notice on official gold and foreign exchange reserves as at 30 September 2026; South African Reserve Bank, gold and foreign exchange position time series; South African Reserve Bank, current market rates; National Treasury, World Bank loan statement, 21 July 2026; Business Day (all accessed 8 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief