Money supply increases to $589 billion

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Reserve money increased to $29,2 billion

ZIMBABWE’S broad money supply, which consists of domestic and foreign currency deposits, rose to $589 billion in March from $506,1 billion, latest Reserve Bank of Zimbabwe (RBZ) data shows.

The central bank said the money stock was largely composed of local currency deposits at 52,74 percent and foreign currency deposits at 42,78 percent. Currency in circulation constituted 0,55 percent of total money supply.

“Month-on-month, broad money increased by 16,39 percent, largely reflecting increases of $49.39 billion and $26,28 billion in foreign currency and local currency transferable deposits, respectively. The increase in foreign currency deposits partly reflected the impact of exchange rate depreciation,” RBZ said in its March economic review.

During the month of March 2022, net domestic claims increased by 13,73 percent, to $425,90 billion. The growth was largely due to increases of $47,71 billion and $5,85 billion in credit to the private sector and net claims on government, respectively.

On an annual basis, broad money registered a growth of 151,45 percent, down from 384,02 percent in March 2021. The local currency component of broad money grew by 163,27 percent; while foreign currency deposits increased by 139,20 percent.

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