Cash transactions surge

Taurai Mangudhla
THE total value of cash-based transactions increased by 26,3 percent to $259,27 million in September 2017, up from $205,33 million the previous month despite a biting foreign currency shortage that has made physical cash scarce in the country, latest figures show.

The cash component was however a measly 2,5 percent of overall transactions in value terms, the Reserve Bank of Zimbabwe (RBZ)’s Monthly Economic Review for September 2017 shows. Zimbabweans have adopted electronic modes of payment to beat the cash shortages with point of sale payments and mobile money comprising the bulk of the payments.

The RBZ said the value of transactions processed through the national payment system (NPS) increased by 16 percent to $10,45 billion in September 2017, from $9,01 billion in August 2017.

“NPS transaction volumes also registered a 14 percent increase, to close at 107,5 million transactions during the same month,” the RBZ said.

“The value of transactions processed through the real time gross settlement (RTGS) system stood at $ 6,03 billion in September 2017, up from $5,33 billion in August 2017. RTGS transaction volumes also increased from 541 521 in August 2017 to 619 700 in September 2017,” the central bank added.

Mobile and internet based transactions stood at $2,89 billion in September 2017, up from $2,36 billion during the previous month while card based transactions amounted to $667,22 million in September 2017, from $614,74 million in August 2017.

The total value of cheque transactions also increased by 0,2 percent, to close the month under analysis at $5,19 million.

The RBZ said annual broad money growth rate rose to 41,37 percent in September 2017, from 36,57 percent in August 2017 largely driven by annual expansions of 52,78 percent and 2,38 percent in transferable deposits and time deposits, respectively.

Beginning January 2017, broad money was redefined using the International Monetary Fund’s Monetary and Financial Statistics Manual of 2000 which excludes Government deposits held by banks from broad money.

Partially offsetting the increases was a decline of 24,67 percent in negotiable certificates of deposits (NCDs). On a monthly basis, broad money increased by 5,44 percent to $7,46 million in September 2017, from $7,07 billion in August 2017.

During the month under review, broad money consisted of transferable or transitory deposits (74,92 percent), time deposits (21,06 percent), currency in circulation (3,26 percent) and negotiable certificates of deposit (0,75 percent).

“Total banking sector credit to the domestic economy registered an annual increase of 39,1 percent, from $7 059,1 million in September 2016 to $9 819,6 million in September 2017. The growth was largely due to a 69,13 percent annual expansion in net credit to Government.”