Skip to main content
Invest Now
012 012 5270
Copyright © Aluma Capital (Pty) Ltd. All rights reserved.
Aluma Capital (Pty) Ltd is a registered Financial Services Provider (FSP 46449) in terms of The Financial Advisory and Intermediary Services Act (37 of 2002)
Frederick Mitchell, Chief Economist | Aluma Capital (Pty) Ltd
Frederick Mitchell
October 8, 2025

South African

Gold and Foreign Exchange

September 2025

The South African International Liquidity Position, measured by Net Gold and Foreign Exchange Reserves, showed growth in both USD and Rand terms for September 2025.

The Rand appreciated slightly against the US Dollar from August to September, according to official reports from the South African Reserve Bank. Reserves increased by nearly USD 2 billion, following a USD 750 million rise in August 2025. The sustained high gold price played a significant role in supporting reserves from August through to September, with gold prices remaining 44.3% higher than the same period in 2024.

In USD terms, however, foreign reserves declined in September compared to the previous month. The Reserve Bank ceased purchasing US Dollars in open market transactions during September, but this did not significantly impact South Africa’s net international liquidity position at this time.

Key commodities such as gold, oil, platinum, and coal offer valuable insights into South Africa’s mining sector and inflation outlook. Monitoring these trends is vital for assessing inflation prospects, especially amid ongoing international developments and potential trade restrictions with the US following August’s tariff measures.

Tracking these movements is crucial, as inflation expectations will influence the South African Reserve Bank’s (SARB) interest rate decisions later in 2025. A stable Rand and slightly lower oil prices are conducive to more favourable inflation forecasts. However, global geopolitical tensions and possible changes to trade agreements, such as the African Growth and Opportunity Act (AGOA), could introduce increased market volatility.

With recent US tariffs and the Federal Reserve’s decision to cut interest rates in September 2025, the Rand may experience continued short-term fluctuations, which could impact both international markets and South Africa’s economic outlook for the remainder of the year.

Back to News

More Coverage

Crypto Currencies and the coming “Regulatory Firewall”

In the face of South Africa’s proposed Draft Capital Flow Management Regulations, a transformative shift in how the country handles digital wealth is imminent. By redefining cryptocurrencies as “capital” and enforcing stringent penalties, South Africa aims to build a digital barrier around its economy. However, this “Regulatory Firewall” faces the immense challenge of controlling decentralised assets, akin to China’s struggle with the “Great Firewall.” The proposed measures could inadvertently push financial innovation underground, risking an unintended exodus of talent and investment to jurisdictions with a more favourable stance on digital finance. This article explores the critical implications of such regulatory hurdles, emphasising the need for a balanced, risk-based framework that supports transparency and innovation, averting the pitfalls of overly rigid controls.

 A view on Demand in the Economy: Retail Sales performance – February 2026 Data

In February 2026, South Africa witnessed a 1.6% rise in retail sales, signalling a fragile yet ongoing recovery in consumer demand, though falling short of the 4.8% expected by analysts. Despite challenges like rising administered prices and sluggish wage growth, this growth persists. Factors such as interest-rate cuts between September 2024 and November 2025 support the retail upswing, highlighted by a rise in both the South African Chamber of Commerce’s business confidence index and the FNB/BER consumer confidence index. Key contributors to the February increase include a 9.4% rise in sales from other retailers and a 3.9% uptick in textiles and apparel, indicating cautious but sustained recovery amidst economic uncertainties.

Consumer Inflation – March 2026

In March 2026, South Africa’s Consumer Price Index (CPI) rose 3.1% year-on-year, slightly above the previous month’s 3.0% and below the forecast of 4.1%. This was mainly driven by increases in housing, utilities, food, and financial services, pushing services inflation just over the Reserve Bank’s upper target limit. As rising inflation erodes purchasing power, many rely on short-term credit, increasing exposure to economic shifts. The Reserve Bank, cautious amid global uncertainties like the Middle East conflict and high fuel prices, maintained interest rates, although potential hikes loom to stabilise prices. Despite positive but modest economic growth, ongoing global tensions, notably the US-China tariff dispute and potential BRICS tariffs, alongside persistent high oil prices, threaten stability. The focus on maintaining price stability and safeguarding the Rand’s value remains paramount as South Africa navigates these challenges in 2026.

The Great Commodity Seesaw: How South Africa’s Gold Shield is Blunting the Oil Shock

In “The Great Commodity Seesaw: How South Africa’s Gold Shield is Blunting the Oil Shock,” the South African economy stands precariously amidst soaring international oil prices and unprecedented gold values. While the country’s heavy reliance on imported fuel hurls motorists toward escalating costs, the shimmering promise of high gold prices provides a vital financial reprieve. This enrichment helps cushion the national accounts, aiding in balancing the trade surplus and reinforcing the currency during geopolitical unrest. Yet, with Eskom’s reliance on diesel to stabilize electricity supply, any unexpected outages could spell inflationary turmoil, rocking the economy’s already fragile state. As the country braces for potential fiscal challenges ahead, the question looms whether the golden buffer can truly shield the nation from impending economic turbulence

From Grid Crisis to Digital Gold: South Africa’s New Crypto-Energy Nexus

South Africa’s story is shifting—from the frustration of load shedding to the emergence of a bold new opportunity. As we move through 2026, an unexpected partnership between energy and cryptocurrency is reshaping the economic landscape. With Eskom exploring ways to monetise surplus solar power and SAA embracing Bitcoin for transactions, the country is stepping into a new era where digital finance and energy innovation converge—unlocking fresh potential for businesses, investors, and growth.