Reserve Money Update as at 09 April 2021

UPDATE ON RESERVE MONEY

AS AT 9TH APRIL 2021

RESERVE MONEY

1. Reserve money declined by ZW$718.12 million to ZW$20.08 billion, as at week ending 9th April 2021, reflecting decreases of ZW$650.35 million and ZW$69.02 million in banks' liquidity (RTGS balances) at the Reserve Bank and statutory reserves, respectively.
2. The decrease in reserve money is attributable to liquidity mopping up operations by the Bank, as indicated by an increase of ZW$2.67 billion in savings bond issuances during the week under review.
   Table 1: Reserve Money Developments (ZW$ Billions)

																						PRELIMINARY ESTIMATES
																			Week			Week			Week			Week			Week
																			Ending			Ending
				Aug-20			Sep-20			Oct-20			Nov-20			Dec-20*							Ending			Ending			Ending
														29 Jan-			26 Feb-
																							26 Mar-21			1 April-21			9 April-21
																			21			21
	Currency Issued	2.06		2.14		2.12		2.13		2.38			2.81			2.95			3.15			3.15			3.16
	by RBZ
	Banking Sector			10.06			10.25			13.38			15.91			16.38			19.12			19.43			17.62			17.64			16.92
	Deposits at RBZ
	Statutory							1.68		2.01		2.20
	(Required)	1.24		1.40						2.44			4.80			5.15			5.16			5.09
	Reserves
	Banks' RTGS			8.83			8.85			11.70			13.90			14.18			16.68			14.63			12.47			12.48			11.83
	Liquidity
	Other Deposits	0.26		0.34		0.02		0.38		0.00
							0.00			0.00			0.00			0.00			0.00
	Reserve Money			12.38			12.73			15.52			18.42			18.76			21.93			22.38			20.77			20.80			20.08
	Memorandum
	Items
	Currency
	Issued/Reserve			16.6			16.8			13.7			11.6			12.67			12.79			13.17			15.16			15.17			15.72
	Money Ratio (%)
	Currency in
	Circulation	0.7		0.7		0.7		0.6		1.2			1.1			1.3			1.3			1.2			1.3
	/Deposits Ratio
(%)

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																							PRELIMINARY ESTIMATES
																				Week			Week			Week			Week			Week
																				Ending			Ending
				Aug-20			Sep-20			Oct-20			Nov-20			Dec-20*								Ending			Ending			Ending
															29 Jan-			26 Feb-
																								26 Mar-21			1 April-21			9 April-21
																			21			21
	Monthly Change
	in RTGS			-15.2			0.3			32.2			18.8			-8.03			20.71			1.19			-2.07			0.08			-5.21
	Balances (%)
	Monthly Change							21.9		18.7		-5.59
	in Reserve Money	-23.3		2.8						17.86			12.40			-0.47			0.12			-3.45
(%)
	Government
	Deposits at RBZ			9.52			10.45			5.47			4.65			6.74			10.46			10.06			14.65			16.31			16.02
	(Stock)
	Monthly Inflation	8.4		3.8		4.4		3.2		4.2			5.4			3.5			2.26			N/A			N/A
	(%) - ZW$ CPI
	Monthly Inflation			1.4			-0.5			1.4			2.2			2.8			2.8			0.7			1.09			N/A			N/A
	(%) - Blended
	Inter-Bank	83.40		81.44		81.35		81.82		81.79			82.68			83.89			84.12			84.40			84.40
	Exchange Rate

*The end-December 2020 reserve money is provisional until audit is completed.

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