Johannesburg - Local gold and foreign currency reserves probably plummeted last month as the price of bullion slumped.
Gross reserves fell by 1.2 percent to $34 billion (R335 billion) at the end of last month from $34.4 billion in September, according to the median estimate of five economists. The Reserve Bank will publish the data on Friday.
"The lower reserves reflect valuation adjustments because of the lower gold price," said Danelee van Dyk, an economist at Standard Bank Group. "There was also substantial volatility in the exchange rate of the rand, which provided less scope for the Reserve Bank to make foreign exchange purchases," he added.
The price of gold dropped more than 16 percent in London last month, the metal's worst monthly plunge in 25 years, while the dollar surged, reducing the value of reserves held in other foreign currencies.
That is undermining the central bank's efforts to build up reserves to cover rising imports.
The local currency slid 16 percent last month, the biggest monthly fall in 23 years.
Other economic data published this week give further evidence that South Africa's economy is slowing.
Local manufacturing contracted for a sixth consecutive month last month, weighed down by higher borrowing costs that damped consumer spending, according to the Investec Purchasing Managers index.
The index hit 46.2 last month from 47.7 in September, said Investec Asset Management.
House prices fell an annual 2.5 percent last month, after gaining 3.6 percent.
