Paul Nyakazeya, Group Digital Editor 
ZIMBABWE’S broad money supply, which consists of domestic and foreign currency deposits, rose to $364,6 billion in September from $329 billion in August, the Reserve Bank of Zimbabwe (RBZ) has said.
According to the RBZ’s monthly economic review for September — published Tuesday — broad money grew by 137 percent between September 2020 and September 2021, compared to a 554,7 percent growth during the 12 months to September 2020.
Reserve Bank of Zimbabwe governor John Mangudya
“The money stock (at the end of September 2021) was composed of 58,57 percent in local currency deposits, while foreign currency deposits constituted the balance of 41,43 percent.
“Local currency transferable deposits dominated the money stock at 49,93 percent of the total, while other classes of deposits and currency in circulation took up the remainder,” the RBZ said.
“The uptick was largely underpinned by an increase in foreign currency deposits, from $133,8 billion in the previous month to $151,1 billion in September 2021. Negotiable certificates of deposit also increased from $1,87 billion in August 2021 to $3,19 billion in the month under review.”
Partially offsetting the increases, were declines in currency in circulation and time deposits.
Domestic claims increased by 8,52 percent, on a monthly basis, to $225,09 billion during the month under review.
The growth in domestic claims was largely driven by increases in claims to public non-financial corporations, 28,54 percent; net claims to government, 9,07 percent and credit to the private sector, 6,90 percent, the bank said.
Claims on the government were largely composed of Treasury bill holdings by banks. The foreign currency deposits component of broad money registered an annual growth of 63,85 percent, from $92,19 billion in September 2020 to $151,1 billion in September 2021.
“This largely reflected an increase in the value of FCAs from US$1,13 billion in September 2020 to US$1,72 billion in September 2021,” the central bank said.
On an annual basis, local currency deposits included in broad money registered a growth of 249 percent, while currency in circulation increased by 81 percent.
“The 137 percent annual growth in broad money largely reflected increases of 363 percent in net claims on government, public non-financial corporations, 270 percent and credit to the private sector, 226 percent”.
“Credit to the private sector was, in large part, extended towards agriculture, 28,42 percent; households, 21,31 percent; distribution, 11,54 percent; financial organisations, 10,49 percent; manufacturing, 10,55 percent and services, 8,27 percent,” the central bank said.
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