By Almot Maqolo.
Harare, Zimbabwe (News of The South) – Zimbabwe’s annual broad moneysupply increased by 38,39 percent to $7,8 billion in January 2018 from
$5,7 billion in the same period last year driven by a surge in transferable deposits and negotiable certificates of deposits, latest
data from the central bank has shown.
Broad money supply (M3), is a measure of the money in circulation which includes physical currency and demand deposits.
In a monthly report the Reserve Bank of Zimbabwe (RBZ) said an annual expansion of 50,2 percent and 28,7 percent was recorded in
transferable deposits and negotiable certificates of deposits respectively.
Partially offsetting the increase were time deposits which declined by 5,9 percent.
On a month-on-month basis, broad money went down 3,3 percent from $8,1 billion in December 2017 to $7,8 billion in January 2018.Domestic credit rose 41,5 percent to $10,5 billion from $7,5 billion reported in the same period last year.
“The growth largely reflected an increase of 67,51 percent in net credit to Government,” RBZ said.
Month-on-month basis, domestic credit declined by 2,3 percent to $10,5 billion in January from $10,7 billion in December.
Year on year, credit to the private sector increased by 9,1 percent in January 2018 to $3,6 billion from $3,4 billion in the previous period.On a monthly basis it went down by 3,8 percent.Credit to households claimed the largest share of credit at 24,2 percent, followed by agriculture at 18,8 percent, while services and distribution took 15,3 percent and 11,4 percent respectively as at the end of January.
Manufacturing, financial organisations and investments share of credit stood at 10,7 percent and 10,9 percent respectively.
Mining and construction share at 4,2 percent and 2,3 percent in that order.
Transport and communications claimed the least at 1,6 percent and followed by others at 0,6 percent. Additionally, the value of transactions processed through the National Payment System (NPS) declined from $11,6 billion in December 2017 to $10,6 billion in January 2018.
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