Zimbabwe’s money supply growth increased by 1,71 percentage points to 14,84 percent in July from 13,13 percent in June due to increased foreign exchange inflows during the tobacco selling season.
According the Reserve Bank of Zimbabwe (RBZ)’s latest monthly economic review, annual growth in money supply was on the back of increases in demand and savings deposits which stood at 31,96 percent and 25,95 percent respectively.
Broad money supply (M3) is a measure of the money in circulation which includes physical currency and demand deposits.
Partially offsetting these increases were declines of 15,21 percent and 4,40 percent in under 30-days and over 30-days deposits, respectively.
“In proportions, demand deposits constituted 53,8 percent of total deposits, followed by over 30-days deposits 19,4 percent under 30-days deposits, 14,3 percent and savings deposits, 12,5 percent,” said the RBZ.
As at July 31, US$558,41 million had been realised from the sale of 190,05 million kgs of tobacco.
“On a month-on-month basis, broad money supply declined by 0,05 percent, to US$5,13 billion from US$5,14 billion,” the central bank said.
Banks’ nostro accounts balances stood at US$166 million. The RBZ recently announced plans to inject funds into nostro accounts through a US$215 million facility from international financiers, while a further US$330 million is under negotiations with regional financiers. The central bank expects the move to improve the external payments situation and subsequently boost liquidity in the economy.
Mobile and internet-based transactions values rose to US$709,3 million from US$639,2 million on June 30 2016. Card-based transactions also registered an increase in July owing to the persistent cash shortages as the value of transactions rose by 21 percent to US$406,4 million from US$335,4 million in June.
The value of cheque transactions, however, recorded a 10 percent decline US$9,2 million from US$10,3 million registered in June 2016.
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Credit: All Africa