The IMF's Special Drawing Rights (SDR) allocation to South Africa of about $4.2 billion (~R60 billion) has helped bolster the SA Reserve Bank's gross reserves to a record of $58.41 billion.
The SA Reserve Bank on Tuesday released the August reserves data. Net reserves increased from $51.65 billion in July to $55.67 billion recorded in August. Gross reserves rose from $54.46 billion in July to $58.41 billion in August. The increases are mainly attributed to the IMF's SDR allocation, noted Investec economist Kamilla Kaplan.
The SDR is an international reserve asset created by the IMF in 1969 to supplement its member countries' official reserves. SDRs are distributed to countries in proportion to their quota shares in the IMF. Earlier this year the IMF announced a historic SDR allocation of $650 billion to boost global liquidity.