GFECRA Settlement Framework Reform
Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.

No data available for the deliverable: Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.

Summary

The reform introduced a new settlement framework for the Gold and Foreign Exchange Contingency Reserve Account (GFECRA), allocating R250bn between the SARB and National Treasury to stabilise public finances and improve transparency. COMPLETE: We stopped tracking this reform at end-June 2025 as The GFECRA settlement framework reform has been fully completed as planned with the R100bn contigency reserve transferred to the SARB and the first tranche of R150bn distributed to National Treasury (NT) - all in line with the 2024 agreement.

Canvas not supported.

Is it working?

Fully implemented: Fiscal risk reduced, transparency improved and market confidence boosted. Ongoing monitoring and reporting ensure the framework remains effective. The GFECRA reform is viewed as a benchmark for fiscal transparency in emerging markets.

Actions

The reform has been fully implemented, with immediate positive effects on fiscal metrics, market confidence and government borrowing costs. The transparent process has been widely praised by analysts and international observers.

Are there plans?

The settlement was signed in June 2024, with R100bn allocated to the SARB’s contingency reserve and R150bn to National Treasury, distributed in tranches to manage market impact.

Is it on the agenda?

The GFECRA reform was a flagship Treasury and SARB initiative, forming a key part of the 2024 Budget and subsequent fiscal strategy. This was prioritised in the 2024 budget and in SARB and National Treasury statements.

Goals

The aim of this reform is to enhance fiscal sustainability by transparently managing South Africa’s gold and foreign exchange reserves, and reducing government borrowing costs and fiscal risk.

Summary

The reform introduced a new settlement framework for the Gold and Foreign Exchange Contingency Reserve Account (GFECRA), allocating R250bn between the SARB and National Treasury to stabilise public finances and improve transparency. COMPLETE: We stopped tracking this reform at end-June 2025 as The GFECRA settlement framework reform has been fully completed as planned with the R100bn contigency reserve transferred to the SARB and the first tranche of R150bn distributed to National Treasury (NT) - all in line with the 2024 agreement.

Canvas not supported.

Is it working?

Fully implemented: Fiscal risk reduced, transparency improved and market confidence boosted. Ongoing monitoring and reporting ensure the framework remains effective. The GFECRA reform is viewed as a benchmark for fiscal transparency in emerging markets.

Actions

The reform has been fully implemented, with immediate positive effects on fiscal metrics, market confidence and government borrowing costs. The transparent process has been widely praised by analysts and international observers.

Are there plans?

The settlement was signed in June 2024, with R100bn allocated to the SARB’s contingency reserve and R150bn to National Treasury, distributed in tranches to manage market impact.

Is it on the agenda?

The GFECRA reform was a flagship Treasury and SARB initiative, forming a key part of the 2024 Budget and subsequent fiscal strategy. This was prioritised in the 2024 budget and in SARB and National Treasury statements.

Goals

The aim of this reform is to enhance fiscal sustainability by transparently managing South Africa’s gold and foreign exchange reserves, and reducing government borrowing costs and fiscal risk.

No data available for the deliverable: Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.

No data available for the deliverable: Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.

No data available for the deliverable: Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.

No data available for the deliverable: Restructuring the Gold and Foreign Exchange Contingency Reserve Account to manage forex reserves and reduce government borrowing.

Analyst: Tinashe Kambadza
Status: Completed
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