UPDATE ON RESERVE MONEY
AS AT 18TH SEPTEMBER 2020
RESERVE MONEY
- 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.
- 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. | . |
- The fall in Government deposit by ZW$1.2 billion also reflects release of liquidity into the economy, over the week under review.
-
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 | ||||||||||||||||||||||
LiquidityΩ | ||||||||||||||||||||||||||||||||
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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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