South Africa exhibits growing global clout: To lend the IMF $2 billion

South Africa’s US$ 2 billion commitment to the International Monetary Fund (IMF) emergency resources fund a sign of the country’s ability to assist in efforts to protect global economy from further deterioration.

South Africa has displayed its global clout by pledging to lend a chunk of its foreign exchange reserves to the IMF, as part of a broad-based move to bolster the institution’s firewall against another international financial crisis.

The decision was taken at a summit of the G20 group of countries in Los Cabos, Mexico earlier this week, where 12 other IMF members agreed to boost their contributions to the global lender’s resources.

South Africa’s commitment exceeds the pledges from Columbia, Cyprus, Malaysia, Malta, New Zealand, Thailand and The Philippines, which have each agreed to contribute between US$600 million and US$1.5 billion to the IMF firewall – which is now totals US$456 billion.

South Africa’s contribution amounts to about 4 percent of its gross gold and foreign exchange reserves, which stood at US$ 49 billion at the end of May 2012.