Broad money supply up on tobacco exports – RBZ

Broad money supply up on tobacco exports – RBZ

HARARE, September 23 (The Source) – Zimbabwe’s annual broad money supply growth rate increased by 1.71 percentage points from 13.13 percent in June to 14.84 percent in July, latest figures from the central bank have shown.

The growth in money supply was partly underpinned by tobacco related foreign exchange inflows. As at end July 2016, $558,41 million had been realised from the sale of 190.05 million kilograms of tobacco.

Broad money supply (M3), is a measure of the money in circulation which includes physical currency and demand deposits.

On a month-on-month basis, broad money supply declined by 0.05 percent, from $5, 140 billion in June to close the month of July at $5,138 billion.

Banking sector credit recorded a 15.2 percent annual increase, from $4, 999 billion in July 2015 to $5, 759 billion in July 2016 while monthly credit to the private sector decreased by 2.3 percent, from $3, 571 billion in June 2016 to $3, 488 billion in July 2016 as banks continued to tighten lending due to the difficult economic environment and high levels of non-performing loans.

Transactions processed through the National Payment System (NPS) recorded a 9 percent decline during the month of July 2016 while cash transactions decreased by 2 percent to $530,6 million in July 2016, from $543,94 million in June 2016.

The value of RTGS transactions registered a 13 percent decline, from $4, 522 billion in the previous month, to $3, 911 billion during the month under review as RTGS transaction volumes fell 10 percent to 242,373 in July 2016.

Mobile and internet based transactions values rose from $639,19 million in June 2016, to close the month of July 2016 at $709,26 million.

Card-based transactions stood at $406,35 million as at the end of July 2016, up from $335,4 million in June 2016.

The value of cheque transactions recorded a 10 percent decline, from $10,26 million registered in June 2016, to $9,2 million.