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Zimbabwe’s money supply growth rate was up 4,5 percent at the end of September from the previous month, driven by increases across all deposit classes, the Reserve Bank of Zimbabwe has said.The annual broad money supply growth rate rose from 3,5 percent in August 2015 to 4,5 percent in September 2015, the central bank said in its monthly report for September.
Broad money supply increased from $4,47 billion in August to $4,58 billion in September. “Annual growth in broad money was driven by increases across all deposit classes, with the exception of short-term deposits,” said RBZ. Long-term deposits registered the largest annual growth of 11,4 percent, followed by demand deposits, 4,8 percent and savings deposits, 4,5 percent. Short-term deposits, however, registered a decline of -3,7 percent.
Broad money is made up of the consolidated deposits of the entire banking sector, which amounted to $4,47 billion in July. The process of consolidation entails netting-off of all interbank transactions, including intra-sectoral deposits.
Broad money computation, also nets out Government and non-resident deposits. Annual growth in total banking sector credit to the domestic economy increased to 19 percent in September 2015, from 18,8 percent in August 2015.
On a monthly basis, the banking sector credit rose from $5,029 billion in August 2015 to $5,079 billion in September. On an annual basis, growth in credit to the private sector which makes up the largest proportion of banking sector credit increased by 2,4 percent in September 2015, up from 1,4 percent in August 2015.
On month-on-month, credit to the private sector also increased from US$3,78 billion in August 2015, to $3,84 billion in September 2015. In terms of distribution, loans and advances accounted for 83,1 percent of the total credit to the private sector, mortgages advanced by building societies, 12,5 percent; other investments, 3,8 percent; bankers’ acceptances, 0,3 percent; and bills discounted, 0,2 percent.
On a sectoral basis, credit was distributed as follows: agriculture (20,4 percent); distribution (15,1 percent); services including tourism (16 percent); manufacturing (14,4 percent); mining (5,9 percent); transport and communications (3,5 percent); and construction (1 percent).
Credit to households constituted 19,7 percent of total credit to the private sector during the month under review. Credit to the private sector was mainly channelled towards asset purchases, 43,6 percent; inventory build-up, 33,5 percent; consumer durables, 13,4 percent; and vehicle purchases.
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