South Africa's National Treasury is considering withdrawing a significant portion of contingency reserves held by the central bank to reduce government debt or fund public-sector wages. The Treasury and central bank are close to finalizing the terms of the withdrawal, with discussions focused on establishing best practices and ensuring sufficient buffers remain in place. Details are expected to be finalized by February.
South Africa ’s National Treasury is considering withdrawing as much as half of the R497 billion of contingency reserves held by the central bank to help reduce the government’s debt load or fund public-sector wages . The Treasury and central bank are close to agreeing on terms of the draw-down from the Gold & Foreign Exchange Contingency Reserve Account, according to people familiar with the discussions who asked not to be identified as they’re not authorized to discuss the matter publicly.
The two institutions have been in talks with development finance agencies about establishing best practices and ensuring sufficient buffers remain in place to guard against future potential exogenous shocks, the people said. Details of the withdrawal are expected to be finalized by the time the Treasury presents the annual budget in February, they said. The Treasury said it’s preparing a response to a request for comment. The central bank declined to comment beyond reiterating Governor Lesetja Kganyago’s confirmation last month that the two institutions are discussing the matte
South Africa National Treasury Central Bank Contingency Reserves Debt Public-Sector Wages Withdrawal Budget Economy
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