HARARE, October 25 (The Source) – Zimbabwe’s annual broad money supply increased by 36.57 percent from $5,1 billion last year to $7,07 billion in August, driven by a rise in deposits, latest figures from the central bank have shown.
Broad money supply (M3), is a measure of the money in circulation which includes physical currency and demand deposits.
In the latest monthly report, the Reserve Bank of Zimbabwe (RBZ) said transferable demand deposits and time deposits grew by 46,98 percent and 3,32 percent respectively.
Negotiable certificates of deposits were however down by 12,1 percent. Month-on-month (M3) was up by 7,79 percent from $6,56 billion in July.
Domestic credit rose by 34,70 percent as credit to government surged 63,22 percent.
Credit to the private sector increased by 8,48 percent to $3,5 billion from $3,3 billion last year.
Credit to households claimed the largest share of credit, at 23,7 percent, followed by agriculture at 17,6 percent while services and manufacturing claimed 16,1 percent and 12 percent respectively as at end of August.
Financial organisations and investments share of credit stood at 10,6 percent while that of distribution and mining stood at 10,1 percent and 5,3 percent respectively.
Transport and communications claimed the least share at 2,1 percent followed by construction at 2 percentage.
The value of transactions processed through the National Payment System (NPS) went up by 6 percent to $9,01 billion from $8.5 billion recorded in July.