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Frederick Mitchell, Chief Economist | Aluma Capital (Pty) Ltd
Frederick Mitchell
March 11, 2026

South African Gold and Foreign Exchange Reserves for February 2026

The South African International Liquidity Position, measured by Net Gold and Foreign Exchange Reserves, showed growth in USD terms but declined in Rand terms for February 2026. The Rand appreciated notably against the US Dollar from December to January 2026, according to official reports from the South African Reserve Bank. Reserves increased by nearly USD 960 million, following a USD 3.7 billion rise in January 2026. The sustained high gold price played a significant role in supporting reserves from January through to February, with gold prices remaining 81% higher than the same period in 2025 at this stage.

In USD terms, foreign reserves increased in February 2026 compared to the previous month. The Reserve Bank continued to purchase US Dollars in open market operations as the Rand gained value against the US Dollar throughout February, thereby impacting South Africa’s net international liquidity position at that 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 in the early stages of 2026, especially given the current conflict in the Middle East. A stable Rand for now and notably higher oil prices are conducive to expected higher inflation forecasts for now; this may, however, change quickly if the US-Iran conflict is not resolved speedily. However, global continued geopolitical tensions and possible changes to trade agreements, such as the African Growth and Opportunity Act (AGOA), which has been extended by one year by the US administration, could introduce increased market volatility as the 30% reciprocal tariffs remained intact on South African exports to the US market in general. With recent US tariffs and the Federal Reserve’s decision to cut interest rates in December 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.

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