Rand Steady, South Africa’s Foreign Exchange Reserves Fall
The South African Rand is trading steady against the US dollar and other crosses on Friday, while the latest report shows that the country’s foreign reserves fell due to weaker gold prices.
The rand strengthened against its major crosses on Thursday, supported by a softer US dollar following the Israel-Lebanon ceasefire announcement, which reduced safe-haven demand for the greenback.
In its brief on Friday, First National Bank (FNB) said the local unit is stable and consistent with its emerging-market currencies. The rand is currently changing hands at R16.33 to the US dollar, R18.95 to the euro and R21.92 to the British pound, according to FNB,
Meanwhile, gross foreign exchange reserves in South Africa fell to $76.58 billion in May 2026 from $77.09 billion in the previous month, remaining at their lowest level since December 2025.
The decline in gross reserves and international liquidity was mainly driven by a drop in the US dollar value of gold holdings and government-related foreign exchange outflows.
Gold reserves decreased ($18.274 billion vs $18.700 billion in April), while foreign currency reserves also declined ($51.661 billion vs $51.725 billion).
At the same time, the forward position, representing the central bank’s unsettled forward or swap transactions, edged down to $0.584 billion from $0.586 billion in the previous month, while SDR holdings decreased by $0.016 billion to $6.648 billion from $6.664 billion.
The yellow metal posted solid gains on Thursday but is trading lower this morning amid renewed concerns over US-Iran tensions, which dented hopes of a broader Middle East peace deal.
This morning, gold is trading at $ 4,439/ounce and is on track to post a weekly loss. Also, Oil prices fell sharply on Thursday but are recovering this morning, following reports of the US-brokered ceasefire between Israel and Lebanon, which removed a key geopolitical risk premium.
Traders remain optimistic that the US and Iran will find a breakthrough in negotiations to end the war and reopen the Strait of Hormuz. Brent crude oil is trading at $95.35/barrel. SpaceX Sets IPO at $135 Per Share, 92x Sales Valuation
