Broad money supply nears $10 billion: RBZ

ZIMBABWE’S annual broad money supply grew 47,5 percent to $9,68 billion in July, from $6,56 billion during the same period in the prior year, according to the Reserve Bank of Zimbabwe (RBZ).
In its monthly economic highlights for July released last week, the RBZ said growth in money supply reflected yearly increases in demand deposits by 63,19 percent and negotiable certificates of deposits by 35,03 percent.
“Time deposits, however, declined by 6,16 percent. Bond notes and coins circulating outside the banking system increased from $201,34 million in July 2017, to $426,94 million in July 2018. On a month-on-month basis, broad money increased by 5,92 percent, from $9,14 billion in June 2018 to $9 68 billion during the month under review,” said the RBZ.
Broad money was made up of demand deposits at 79,16 percent; time deposits at 15,51 percent; currency in circulation at 4,41 percent; and negotiable certificates of deposits at 0,92 percent in July 2018.
Annual credit to the private sector grew by 4,8 percent in July 2018, compared to an annual growth of 11,42 percent in the previous month.
Monthly credit to the private sector declined by 6,77 percent, from $3,91 billion in June 2018 to $3,64 billion in July 2018.
Sectorally, households accounted for 25,96 percent of total domestic credit, followed by agriculture at 18,43 percent; distribution at 15,25 percent; services at 12,30 percent; manufacturing at 10,92 percent; financial organisations and investments at 6,19 percent; mining at 4,53 percent; construction at 2,82 percent; and transport and communications at 2,24 percent.
“Credit to the private sector was utilised for inventory build-up 24,07 percent; consumer durables 21,25 percent; fixed capital investment 12,45 percent and pre and post shipment financing 1,77 percent. Other recurrent expenditures accounted for 40,5 percent of the total outstanding loans and advances, during the month under review,” the RBZ said.
Meanwhile, in its latest weekly economic highlights, the RBZ said the total value of transactions processed through the National Payments System (NPS) decreased to $2,82 billion during the week ending October, from $3,20 billion recorded on September 29.
Transactions processed through the Real Time Gross Settlement (RTGS) system recorded a decline of 24 percent to close the week under review at $1,61 billion.
In terms of proportions, RTGS payments accounted for 57,12 percent of the total value of transactions processed through the NPS; followed by mobile, 31,48 percent; Point of Sale (POS), 11,22 percent; automated teller machines (ATMs) 0,14 percent and cheques 0,03 percent.
“Transaction volumes processed through the NPS stood at 46,7 million, up from 43,7 million transactions recorded in the previous week. The transaction volumes were distributed as follows – mobile, 82,92 percent; POS, 16,57 percent; ATM, 0,18 percent; RTGS, 0,32 percent and cheque 0,01 percent,” said the RBZ.
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