Reserve Bank of Zimbabwe : Money Update as at 08 January 2021

UPDATE ON RESERVE MONEY

AS AT 8TH JANUARY 2021

RESERVE MONEY

1. Reserve money for the week ending 8th January 2021 increased by ZW$2.00 billion to ZW$20.76 billion, compared to the position as at 31st December 2020.
2. The rise in reserve money largely reflected an increase of ZW$1.69 billion in banks' liquidity at the Reserve Bank (RTGS balances), coupled with increases of ZW$174.05 million and ZW$134.06 million in currency issued and required reserves, respectively.
3. The growth in banks' RTGS liquidity was, in part, driven by RBZ purchases of foreign exchange from the market, for purposes of funding the auction.
   Table 1: Reserve Money Developments (ZW$ Billions)

																									PRELIMINARY ESTIMATES
																									Week			Week			Week
				May-20			Jun-20			Jul-20			Aug-20			Sep-20			Oct-20			Nov-20			Ending			Ending			Ending
																									18 Dec-20			31 Dec-20			8 Jan-21
	Currency Issued	1.46		1.67		1.90		2.06		2.14		2.12		2.13			2.35			2.38			2.55
	by RBZ
	Banking Sector			12.08			10.42			11.46			10.06			10.25			13.38			15.91			17.52			16.38			18.21
	Deposits at RBZ
	Statutory																1.68		2.01
	(Required)	1.39		0.89		1.05		1.24		1.40					2.10			2.20			2.33
	Reserves
	Banks' RTGS			10.70			9.53			10.41			8.83			8.85			11.70			13.90			15.42			14.18			15.87
	Liquidity
	Other Deposits	0.28		0.58		2.79		0.26		0.34		0.02		0.38			0.00			0.00			0.00

2

																									PRELIMINARY ESTIMATES
																									Week			Week			Week
				May-20			Jun-20			Jul-20			Aug-20			Sep-20			Oct-20			Nov-20			Ending			Ending			Ending
																									18 Dec-20			31 Dec-20			8 Jan-21
	Reserve Money			13.82			12.65			16.15			12.38			12.73			15.52			18.42			19.87			18.76			20.76
	Memorandum
	Items
	Currency
	Issued/Reserve			10.5			13.2			11.8			16.6			16.8			13.7			11.6			11.83			12.67			12.28
	Money Ratio (%)
	Currency in
	Circulation	1.9		1.2		0.9		0.7		0.7		0.7		0.6			1.2			1.2			1.2
	/Deposits Ratio
(%)
	Monthly Change
	in RTGS			19.0			-10.9			-9.2			-15.2			0.3			32.2			18.8			31.51			-8.03			11.92
	Balances (%)
	Monthly Change																21.9		18.7
	in Reserve Money	10.9		-8.4		27.6		-23.3		2.8					24.23			-5.59			10.65
(%)
	Government
	Deposits at RBZ			2.09			7.46			6.02			9.52			10.45			5.47			4.65			5.79			6.74			8.81
	(Stock)
	Monthly Inflation	15.1		31.7		35.5		1.4		-0.5		1.4		2.3			2.8			2.8			NA
(%)
	Inter-Bank			25.00			57.36			76.76			83.40			81.44			81.35			81.82			81.74			81.79			81.79
	Exchange Rate

3