Reserve Bank of Zimbabwe : Money Update as at 27 November 2020

UPDATE ON RESERVE MONEY

AS AT 27TH NOVEMBER 2020

RESERVE MONEY

1. Reserve money for the week ending 27th November 2020 declined by ZW$449.13 million, to ZW$17.92 billion, largely reflecting a decrease of ZW$678.76 million in banks' liquidity (RTGS balances) at the Reserve Bank.
2. The decrease in reserve money was largely attributable to liquidity mopping operations through issuance of open market operations (OMO) savings bonds, coupled with an increase of ZW$819.6 million in Government deposits at the Central Bank, both of which had the impact of withdrawing liquidity from the market.
3. Partially offsetting the decline in liquidity were increases in required reserves and other deposits at RBZ of ZW$124.38 million and ZW$111.32 million, respectively.
   Table 1: Reserve Money Developments (ZW$ Billions)

																									PRELIMINARY ESTIMATES
																									Week			Week			Week
				Mar-20			Apr-20			May-20			Jun-20			Jul-20			Aug-20			Sep-20			Ending			Ending			Ending
																									30 Oct-20			20 Nov-20			27 Nov-20
	Currency Issued	1.31		1.34		1.46		1.67		1.90		2.06		2.14			2.12			2.14			2.13
	by RBZ
	Banking Sector			8.79			10.20			12.08			10.42			11.46			10.06			10.25			12.83			16.12			15.56
	Deposits at RBZ
	Statutory
	(Required)	1.21		1.21		1.39		0.89		1.05		1.24		1.40			1.68			1.80			1.92
	Reserves
	Banks' RTGS			7.58			8.90			10.70			9.53			10.41			8.83			8.85			11.15			14.32			13.64
	Liquidity

2

																									PRELIMINARY ESTIMATES
																									Week			Week			Week
				Mar-20			Apr-20			May-20			Jun-20			Jul-20			Aug-20			Sep-20			Ending			Ending			Ending
																									30 Oct-20			20 Nov-20			27 Nov-20
	Other Deposits	1.61		0.92		0.28		0.58		2.79		0.26		0.34			0.09			0.12			0.23
	Reserve Money			11.71			12.46			13.82			12.65			16.15			12.38			12.73			15.04			18.37			17.92
	Memorandum
	Items
	Currency
	Issued/Reserve			11.2			10.8			10.5			13.2			11.8			16.6			16.8			14.11			11.63			11.89
	Money Ratio (%)
	Currency in
	Circulation	2.2		2.0		1.9		1.2		0.9		0.7		0.7			1.3			2.8			1.1
	/Deposits Ratio
(%)
	Monthly Change
	in RTGS			26.3			18.5			19.0			-10.9			-9.2			-15.2			0.3			-9.41			27.51			-4.74
	Balances (%)
	Monthly Change
	in Reserve Money	24.8		6.5		10.9		-8.4		27.6		-23.3		2.8			-6.69			20.92			-2.44
(%)
	Government
	Deposits at RBZ			2.85			2.97			2.09			7.46			6.02			9.52			10.45			5.48			4.33			5.16
	(Stock)
	Monthly Inflation	26.6		17.6		15.1		31.7		35.5		1.4		-0.5			1.4			NA			NA
(%)
	Inter-Bank			25.00			25.00			25.00			57.36			76.76			83.40			81.44			81.35			81.71			81.82
	Exchange Rate

3