With the adoption of an inflation-targeting monetary policy framework in 2001, South Africa has abandoned the almost archaic practice of aggressive intervention in the foreign exchange market with the purpose of influencing the level of the rand's exchange rate.
In addition, the Bank and the National Treasury made a concerted effort to eliminate the negative net open foreign currency position (NOFP) from a high of $ billion in September 1998. This goal was achieved in May 2003 and opened the way towards steadily increasing the Bank's reserves. At the same time, the Bank also streamlined its reserve management structures and processes.