The Gold and Foreign Exchange Contingency Reserve Account is not a piggy bank that can be used to solve South Africa’s fiscal problems.

Debt service costs and civil servant wages account for 61% of total government spending, reducing budgets for, say, education, infrastructure and health

Understanding the market and a well-defined trading plan are essential for success

South Africa’s debt-to-GDP ratio must drop below 60%, meaning some conditions have to be met – and ensuring state-owned enterprises are effective is a priority

Commentators are cautiously positive about the treasury’s decision to use the Gold and Foreign Exchange Contingency Reserve Account

The decision follows pressure from civil society and labour — as well as warnings that the treasury risks leaving the Reserve Bank in a precarious position

The Reserve Bank governor confirmed the central bank is in talks with the treasury over calls to tap the Gold and Foreign Exchange Contingency Reserve Account This content is restricted to registered users and subscribers. Get Your Free Account The Mail & Guardian is committed to providing all our readers with the best possible experience. Please register your free account now. Your registration is your first step to becoming an M&G community member. Register Registration enables: – M&G newsletters access – notifications – the best possible experience Already registered? Login here Want to subscribe and get even more benefits? Explore our subscription offers