HARARE – FBroad money deposits saw an annual growth of 55.53% in August 2021, according to the latest statistics released by the Reserve Bank of Zimbabwe (RBZ).
Foreign currency deposits increased from $ 86.01 billion in August 2020 to $ 133.77 billion in August 2021 and this is explained by an increase in the value of foreign currency accounts (FCA), by 1.03 billion in August 2020 to 1.55 billion US dollars in August 2021.
The growth of FCA deposits was facilitated by revaluation changes, due to the exchange rate movement from $ 83.40 per US $ 1 in August 2020 to $ 86.06 per US $ 1 in August 2021.
Despite the annual growth, FCA deposits declined month over month during the period under review, as they fell 5.24%, from $ 141.17 billion in July to $ 133 , 77 billion dollars.
FCA balances have since increased to US $ 1.8 billion according to the RBZ in a market update released this month.
Broad money fell from $ 330.66 billion recorded in July 2021 to $ 329.19 billion in August.
During the period under review, domestic claims increased 11.40 percent to $ 207.41 billion, with this growth largely driven by increases of 24.58 percent in net claims to government and 7.13 percent of loans to the private sector, according to the umbrella bank.
The local currency component of broad currency deposits grew by 227.02 percent annually, while currency in circulation grew by 112.53 percent.
Broad money in August consisted of transferable deposits in national currency, 49.16 percent, deposits in foreign currency accounts, 42.70 percent, term deposits, 6.97 percent, foreign currency. circulation, 0.72 percent, and negotiable certificates of deposits. , 0.46 percent.
In August 2021, a monthly growth of 6.97% was achieved in credit to the private sector, which amounted to $ 136.5 billion compared to $ 127.6 billion in the previous month of July. 2021. Credit to the private sector has mainly gone to agriculture, 30.20 percent; households, 20.00%; distribution, 11.48 percent; financial organizations, 10.82 percent; manufacturing, 9.85%; and services, 8.43 percent,
Year-over-year credit to the private sector increased 203.67% in August 2021, with growth in credit to the private sector not only due to increased production, but also reflecting rate fluctuations. exchange rate during the year ending in August. 2021.
Credit to the private sector has gone largely to building up stocks, 33.91 percent; other recurring expenses, 28.69 percent; and investment in fixed assets, 18.13 percent. – Business weekly