Reserve Bank of Zimbabwe : Money Update as at 18 September 2020

09/27/2020 | 03:35am

UPDATE ON RESERVE MONEY

AS AT 18TH SEPTEMBER 2020

RESERVE MONEY

  1. Reserve money increased by ZW$337 million to ZW$14.16 billion over the week ending 18 September 2020, from ZW$13.83 billion recorded during the previous week.
  2. The growth in reserve money largely reflected an increase of ZW$280 million in banks' deposits at the Reserve Bank. The increase in banks' liquidity reflects preparations by corporates for the Quarterly Payment

Date (QPD) tax obligations, due by 25 September 2020.

.

  1. The fall in Government deposit by ZW$1.2 billion also reflects release of liquidity into the economy, over the week under review.
  2. Required reserves and currency issued also rose by ZW$39 million and ZW$22 million, respectively, during the week under review.
    Table 1: Reserve Money Developments (ZW$ Millions)

PRELIMINARY ESTIMATES

Week

Week

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Ending

Ending

11 Sept-20

18 Sept-20

Currency Issued by

1,137

1,217

1,308

1,341

1,456

1,671

1,898

2,052

2,121

2,143

RBZ*

Banking Sector

7,254

7,089

8,789

10,199

12,082

10,420

11,457

9,777

11,171

11,491

Deposits at RBZ

Statutory (Required)

1,041

1,083

1,205

1,214

1,387

890

1,050

1,186

1,279

1,318

Reserves

Banks' RTGS

6,213

6,006

7,584

8,895

10,696

9,529

10,408

8,591

9,892

10,172

Liquidity

Other Deposits@

861

1,075

1,608

920

277

582

2,790

288

533

528

Reserve Moneyπ

9,251

9,381

11,705

12,460

13,815

12,652

16,145

12,117

13,825

14,162

2

PRELIMINARY ESTIMATES

Jul-20

Week

Week

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Aug-20

Ending

Ending

11 Sept-20

18 Sept-20

Memorandum Items

Currency

Issued/Reserve

12.3%

13.0%

11.2%

10.8%

10.5%

13.2%

11.8%

16.9%

15.3%

15.1%

Money Ratio

Currency in

Circulation**

2.7%

2.5%

2.2%

2.0%

1.9%

1.2%

0.9%

1.4%

1.5%

1.5%

/Deposits Ratio

Monthly Change in

-16.4%

-3.3%

26.3%

18.5%

19.0%

-10.9%

-9.22%

10.11%

3.47%

2.84%

RTGS Balances

Monthly Change in

-10.4%

1.4%

24.8%

6.5%

10.9%

-8.4%

27.6%

6.02%

5.10%

2.44%

Reserve Money

Government Deposits

3,144

3,347

2,847

2,967

2,092

7,457

6,022

11,520

14,203

13,002

at RBZ (Stock)ψ

Other Deposits at

RBZ

3,824

2,972

3,311

(FPR a/c)

Monthly Inflation©

2.2%

13.5%

26.59%

17.64%

15.13%

31.66%

16.65%

1.41%

N/A

N/A

Inter-Bank Exchange

17.35

17.95

25.00

25.00

25.00

57.36

76.76

83.40

82.70

81.71

Rate

Notes:

  • Currency Issued - refers to bank notes and coins issued by the Reserve Bank of Zimbabwe.
  • Currency in Circulation - refers to the currency circulating outside the banking system. This excludes currency held in the vaults of banks.
  • These are deposits that banks place in the Real Time Gross Settlement (RTGS) System for purposes of meeting their inter-bank transactions.
  • Figures may reflect positions as at last Friday of the month. See Monthly Reviews for month-end positions.
  • Other Deposits at RBZ are mainly proceeds of drawdowns from foreign currency loans, which are advanced to Fidelity Printers & Refiners (FPR) to purchase gold from the gold producers. The amounts are, therefore, purely accounting entries, which do not represent money creation. With effect from 7th August 2020, this foreign exchange deposit will now appear as a memorandum item.
  • Provisional.

3

© Blended Inflation Rate - from July 2020, the rate reflects the combined local currency and foreign currency price indices.

N/A - not yet available.

4

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Disclaimer

Reserve Bank of Zimbabwe published this content on 26 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 September 2020 07:34:07 UTC

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