South African Reserve Bank to invest $1.5 billion in China bond market

By Susanna Moon

Chicago, March 26 - The South African Reserve Bank said it will invest in China's interbank bond market under an agreement inked with the People's Bank of China.

The agreement allows the bank to invest about $1.5 billion, which is roughly 3% of South Africa's official gold and foreign exchange reserves of $50 billion, according to a bank notice.

"South Africa's trading patterns have seen significant changes such that today China is our largest trading partner and the foreign exchange reserves diversification strategy of the [bank] responds to this change in South Africa's trade relations," the release said.

The Chinese bond market ranks number five in the world, and "it continues to grow rapidly in both depth and liquidity," the release noted.

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