Annual broad money supply growth up 5,9pc The use of electronic payment systems will also result in de-congested banking halls

rbzLatest data from the Reserve Bank of Zimbabwe shows that annual broad money supply growth rose 5,9 percent in July from 5,1 percent in June 2015. Monthly broad money supply growth, however, recorded a 1,54 percent decline to $4,47 billion from $4,54 billion in June.

The report, says annual growth in broad money was largely underpinned by increases in long-term deposits, which recorded a 16,4 percent growth during the period under review. Savings, short-term and demand deposits rose by 9,4 percent, 2,0 percent and 1,8 percent, respectively.

Demand deposits accounted for 46,72 percent; short-term, 16,96 percent; long-term, 23,2 percent; and savings deposits, 13.3 percent of total deposits.

There was however a decline in the annual growth in total banking sector credit to the domestic economy to 18.5 percent in July from 20,5 percent in June 2015.

On a monthly basis, banking sector credit declined by 1 percent to $4 98 billion.

On an annual basis, growth in credit to the private sector was 1,9 percent down from 3,9 percent in June 2015.

On a monthly basis, however, growth in credit to the private sector, rose 0,8 percent to $3,77 billion while net claims on Government grew to $1,07 billion.

In terms of composition, loans and advances constituted 83,4 percent of the total credit to the private sector, mortgages advanced by building societies, 12,2 percent; other investments, 3,2 percent; bankers’ acceptances 0,7 percent; and bills discounted 0,6 percent.

On a sectoral basis, credit was distributed as follows: agriculture (20,3 percent); distribution (16,3 percent); services including tourism (14,4 percent); manufacturing (14,4 percent); mining (6,4 percent); transport and communications (3,4 percent); and construction (0.9 percent). Credit to households remained high at 20 percent of total credit to the private sector.

Credit to the private sector was mainly channelled towards asset purchases, 43,7 percent; inventory build-up 34,2 percent; consumer durables 12,8 percent; and vehicle purchases 3,1 percent.

The proportion of borrowed funds utilised for capital development remained low at 4,7 percent of total loans and advances.

In terms of allocation, the procurement of plant and equipment, land development, and office equipment, accounted for 3,29 percent, 0,96 percent and 0,47 percent, respectively, of total loans and advances. — Wires.

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