Reserve Bank of Zimbabwe : Money Update as at 31 December 2020

UPDATE ON RESERVE MONEY

AS AT 31ST DECEMBER 2020

RESERVE MONEY

1. Reserve money for the week ending 31st December 2020, decreased by ZW$1.11 billion to ZW$18.76 billion, compared to the position as at week ending 18th December 2020.
2. The fall in reserve money largely reflected a decline of ZW$1.24 billion in banks' liquidity at the Reserve Bank (RTGS Balances), which was partly offset by increases of ZW$102.54 million and ZW$25.65 million in required reserves and currency issued, respectively.
3. The decrease in market liquidity over the period under review was largely due to liquidity management operations of the Bank, through issuance of saving bonds to banks.
   Table 1: Reserve Money Developments (ZW$ Billions)

																									PRELIMINARY ESTIMATES
																									Week			Week			Week
				Apr-20			May-20			Jun-20			Jul-20			Aug-20			Sep-20			Oct-20			Ending			Ending			Ending
																									27 Nov-20			18 Dec-20			31 Dec-20
	Currency Issued	1.34		1.46		1.67		1.90		2.06		2.14		2.12			2.13			2.35			2.38
	by RBZ
	Banking Sector			10.20			12.08			10.42			11.46			10.06			10.25			13.38			15.56			17.52			16.38
	Deposits at RBZ
	Statutory																			1.68
	(Required)	1.21		1.39		0.89		1.05		1.24		1.40				1.92			2.10			2.20
	Reserves
	Banks' RTGS			8.90			10.70			9.53			10.41			8.83			8.85			11.70			13.64			15.42			14.18
	Liquidity
	Other Deposits	0.92		0.28		0.58		2.79		0.26		0.34		0.02			0.23			0.00			0.00

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																									PRELIMINARY ESTIMATES
																									Week			Week			Week
				Apr-20			May-20			Jun-20			Jul-20			Aug-20			Sep-20			Oct-20			Ending			Ending			Ending
																									27 Nov-20			18 Dec-20			31 Dec-20
	Reserve Money			12.46			13.82			12.65			16.15			12.38			12.73			15.52			17.92			19.87			18.76
	Memorandum
	Items
	Currency
	Issued/Reserve			10.8			10.5			13.2			11.8			16.6			16.8			13.7			11.89			11.83			12.67
	Money Ratio (%)
	Currency in
	Circulation	2.0		1.9		1.2		0.9		0.7		0.7		0.7			1.1			1.2			1.2
	/Deposits Ratio
(%)
	Monthly Change
	in RTGS			18.5			19.0			-10.9			-9.2			-15.2			0.3			32.2			-4.74			31.51			-8.03
	Balances (%)
	Monthly Change																			21.9
	in Reserve Money	6.5		10.9		-8.4		27.6		-23.3		2.8				-2.44			24.23			-5.59
(%)
	Government
	Deposits at RBZ			2.97			2.09			7.46			6.02			9.52			10.45			5.47			5.15			5.79			6.74
	(Stock)
	Monthly Inflation	17.6		15.1		31.7		35.5		1.4		-0.5		1.4			2.2			NA			NA
(%)
	Inter-Bank			25.00			25.00			57.36			76.76			83.40			81.44			81.35			81.82			81.74			81.79
	Exchange Rate

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