Posted 12/15/2023, 10:05:59 AM
South Africa Weighs Withdrawing Billions from Reserves to Cut Debt or Pay Public Sector Wages
- South Africa considering withdrawing up to half of $27.3 billion contingency reserves to cut debt or fund public sector wages
- Reserves held in central bank's Gold & Foreign Exchange Contingency Reserve Account
- Discussions between Treasury and central bank close to agreeing on terms of withdrawal
- Withdrawal being considered as elections near and public finances under strain from lower revenues and higher costs
- Concerns raised about one-time fix not addressing underlying issues and potentially diminishing reserves or jeopardizing central bank independence