Sarb official warns about use of Aussie investments as a proxy for China

Central bank reserve managers should be wary of using investments in Australian dollars as a mechanism to gain liquid exposure to China, according to an official at the South African Reserve Bank (Sarb).

Sarb changed its reserves policy this year to permit investments in both China and Australia as well as in South Korea. The reserves management unit has already made direct investments into the onshore renminbi bond market, with Sarb favouring government paper and policy bank investments that