Tobacco sales drive broad money supply up 23pct

Tobacco sales drive broad money supply up 23pct

HARARE, June 19 (The Source) – Zimbabwe’s annual broad money supply grew by 22,67 percent in April to $6,2 billion, largely driven by an increase of 31,22 percent  in transferable deposits, latest data from the central bank has shown.

However, negotiable certificates of deposits (NCD) and time deposits eased 20,99 percent and 2,42 percent respectively.

On a month on month basis, broad money increased by 4,03 percent, from $5,88 billion in March.

“The expansion of money supply, in part, reflects injection of new money into the banking

system through tobacco sales for which $206.4 million worth of tobacco had been sold by end of April 2017,” said RBZ.

Domestic credit recorded an annual growth of 19,1 percent to $8,18 billion from $6,87 billion recorded in the same period last year. On a monthly basis, it increased by 2,95 percent, with claims on government expanding by 6,44 percent and credit to the private sector declining by 1,78 percent.

Credit to the private sector fell  0,33 percent to $3,43 billion in the month under review from $3,44 billion recorded in the same period last year,reflecting a subdued bank lending in an environment where credit risk is high.

The total value of transactions processed through the National Payment System (NPS) decreased to $6,95 billion in April from $7,01 billion recorded in the previous month.