Reserve Money Update as at 4 June 2021

UPDATE ON RESERVE MONEY

AS AT 4TH JUNE 2021

RESERVE MONEY

1. Reserve money increased by ZW$902.23 million to ZW$24.28 billion, as at week ending 4th June 2021. The rise in reserve money reflected an increase of ZW$590.80 million in banks' liquidity (RGTS balances) at the Reserve Bank, coupled with increases of ZW$196.18 million and ZW$115.25 million in required reserves and currency issued, respectively.
2. The rise in market liquidity was largely attributable to maturing savings bonds held by banking institutions, which was partially offset by issuance of non-negotiable certificates of deposits (NNCDs) to banks with excess liquidity balances.
   Table 1: Reserve Money Developments (ZW$ Billions)

																						PRELIMINARY ESTIMATES
																			Week			Week			Week			Week			Week
				Sep-20			Oct-20			Nov-20			Dec-20*			Jan-21			Ending			Ending			Ending			Ending			Ending
																			26 Feb-21			26 Mar-21			30 April-21			28 May -21			04 June -21
	Currency Issued	2.14		2.12		2.13		2.38		2.70			2.95			3.15			3.25			3.61			3.72
	by RBZ
	Banking Sector			10.25			13.38			15.91			16.38			19.12			19.43			17.62			19.37			19.77			20.56
	Deposits at RBZ
	Statutory				1.68		2.01		2.20		2.44
	(Required)	1.40							4.80			5.15			5.73			6.36			6.56
	Reserves
	Banks' RTGS			8.85			11.70			13.90			14.18			16.68			14.63			12.47			13.64			13.41			14.00
	Liquidity
	Other Deposits	0.34		0.02		0.38		0.00		0.00			0.00			0.00			0.00			0.00			0.00
	Reserve Money			12.73			15.52			18.42			18.76			21.82			22.38			20.77			22.62			23.38			24.28
	Memorandum
	Items
	Currency
	Issued/Reserve			16.8			13.7			11.6			12.67			12.39			13.17			15.16			14.38			15.43			15.33
	Money Ratio
	(%)

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																			PRELIMINARY ESTIMATES
																Week			Week			Week			Week			Week
				Sep-20		Oct-20		Nov-20		Dec-20*		Jan-21				Ending			Ending			Ending			Ending			Ending
															26 Feb-21			26 Mar-21			30 April-21			28 May -21			04 June -21
	Currency in
	Circulation		0.7		0.7		0.6		1.2		1.2			1.3			1.3			1.3			1.2			1.3
	/Deposits Ratio
(%)
	Monthly Change
	in RTGS			0.3		32.2		18.8		2.06		17.55			1.19			-2.07			-0.95			-0.41			4.40
	Balances (%)
	Monthly Change			21.9		18.7		1.83		16.32
	in Reserve		2.8							12.40			-0.47			0.34			1.04			3.86
	Money (%)
	Government
	Deposits at RBZ	10.45		5.47		4.65		6.74		10.31			10.06			14.65			11.38			7.56			7.75
	(Stock)
	Monthly					4.4		3.2		4.2		5.4
	Inflation	(%)	-	3.8							3.5			2.26			1.58			2.54			2.54
	ZW$ CPI
	Monthly
	Inflation	(%)	-	-0.5		1.4		2.2		2.8		2.8			0.7			1.09			0.94			1.80			1.80
	Blended
	Inter-Bank		81.44		81.35		81.82		81.79		82.68			83.89			84.12			84.50			84.73			84.77
	Exchange Rate

*The end-December 2020 reserve money is provisional until audit is completed.

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