The build-up of foreign exchange  BIS central bankers’ speeches  1  reserves will continue when market conditions are conducive, and taking into account a careful cost/benefit analysis.
A higher reserves cushion will not only make South Africa more resilient in crisis situations and in the wake of volatile capital flows, but should also help to increase policy flexibility, for example, if exchange rates are perceived to have deviated significantly from what is considered “fair value” as suggested by macro-economic fundamentals.