As stated previously, whilst not working toward a specific target for reserves within a specific time frame, the Bank is strengthening its reserves mainly by means of purchasing, in a reponsible manner, moderate amounts of foreign exchange in the market, as and when, in our opinion, market conditions permit such purchases without unduly influencing the exchange rate and introducing unnecessary volatility in the market.
We continue to accept that the exchange rate is set in the market. From time to time the Bank was also supported by the National Treasury in the process of accumulating reserves, when the proceeds of foreign bond issuances were sold to the Bank in exchange for Rand.