Reserve Money Update as at 31 December 2021

UPDATE ON RESERVE MONEY

AS AT 31ST DECEMBER 2021

RESERVE MONEY

1. Reserve money decreased by ZW$2.31 billion to ZW$25.94 billion during the week ending 31st December 2021, compared to the previous week's position of ZW$28.25 billion.
2. The fall in reserve money largely reflected declines of ZW$1.99 billion in banks' liquidity (RTGS balances) at the Central Bank, coupled with a decrease of ZW$319.60 million in required reserves.
3. Currency issued rose marginally, by ZW$1.07 million, during the week under review.
   Table 1: Reserve Money Developments (ZW$ Billions)

																										PRELIMINARY ESTIMATES
																										Week			Week			Week
				May-21			Jun-21			Jul-21			Aug -21			Sep -21			Oct -21			Nov -21				Ending			Ending			Ending
																										17 Dec -21			24 Dec -21			31 Dec -21*
	Currency
	Issued by	3.65		3.90		4.51		4.75		4.77		4.81		4.91			5.14			5.15			5.15
	RBZ
	Banking
	Sector			22.57			20.95			20.43			23.74			21.47			19.54			23.28			23.24			23.10			20.79
	Deposits at
	RBZ
	Statutory	6.66		7.27		7.86		8.22		9.26		9.54		18.71
	(Required)									19.49			20.10			19.78
	Reserves
	Banks'
	RTGS			15.91			13.68			12.57			15.53			12.22			10.00			4.57			3.75			3.00			1.01
	Liquidity
	Other	0.00		0.00		0.00		0.00		0.00		0.00		0.00			0.00			0.00			0.00
	Deposits
	Reserve			26.22			24.84			24.94			28.50			22.24			24.36			28.19			28.38			28.25			25.94
	Money
	Currency
	Issued/
	Reserve			13.92			15.68			18.09			16.67			18.18			19.76			17.40			18.10			18.23			19.86
	Money Ratio
	(%)
															2

																										PRELIMINARY ESTIMATES
																										Week			Week			Week
				May-21			Jun-21			Jul-21			Aug -21			Sep -21			Oct -21			Nov -21				Ending			Ending			Ending
																										17 Dec -21			24 Dec -21			31 Dec -21*
	Currency in
	Circulation	1.1		1.4		1.4		1.5		1.5		1.2		1.1			1.2			1.2			1.2
	/Deposits
	Ratio (%)
	Monthly
	Change in			16.62			-14.00			-8.12			23.52			-21.31			-18.14			-54.30			-6.15			-20.04			-66.33
	RTGS
	Balances (%)
	Monthly
	Change in	15.89		-5.23		0.40		14.23		-7.90		-7.19		15.72			-1.28			-0.45			-8.17
	Reserve
	Money (%)
	Government
	Deposits at			7.11			12.12			9.56			10.68			13.84			13.49			16.06			17.16			22.68			10.80
	RBZ (Stock)
	Monthly	2.54		3.88		2.56		4.19		4.73		6.40		5.76
	Inflation (%)									5.76			5.76			5.76
	- ZW$ CPI
	Monthly
	Inflation (%)			1.80			4.49			0.67			1.32			1.94			2.62			2.13			2.06			2.06			2.06
	- Blended
	Inter-Bank	84.73		85.42		85.64		86.06		87.67		97.14		105.67
	Exchange									108.67			108.67			108.67
	Rate

*Provisional until audit is finalized.

3