S.Africa cbank says not aware of talks to make platinum reserve asset

by Reuters 0

SARB said there were no talks among central bankers about upgrading platinum's status to a recognized reserve asset.

The South African Reserve Bank (SARB) said on Monday there were no talks among central bankers about upgrading platinum’s status to a recognized reserve asset and past studies on the issue it had taken did not support the notion.

South Africa’s mining industry, unions and the government want to boost platinum’s sagging fortunes by promoting it as a central bank reserve asset, part of a broader plan aimed at stemming job losses in the shafts.

But the SARB made clear it was cool on the idea.

“Feasibility studies conducted by the SARB previously around the possibility of adding platinum to reserves … suggested that the status quo should remain,” said Hlengani Mathebula, the head of the SARB’s Group Strategy and Communications, in an emailed response to Reuters’ questions.

“Any possible reconsideration of this position would need to be informed by platinum being recognised as an international official reserve asset … The SARB is not aware of any discussions in the central banking community and the broader official sector on this matter,” Mathebula said.