Reserve Money Update as at 22 January 2021

UPDATE ON RESERVE MONEY

AS AT 22ND JANUARY 2021

RESERVE MONEY

1. Reserve money for the week ending 22nd January 2021 declined by ZW$1.13 billion to ZW$18.60 billion, compared to the last week's position.
2. The decrease in reserve money largely reflected a reduction of ZW$1.18 billion in banks' liquidity at the Reserve Bank (RTGS balances), which was partially offset by increases of ZW$46.76 million and ZW$1.96 million in required reserves and currency issued, respectively.
3. The fall in market liquidity was largely attributable to the take up of savings bonds by banking institutions, which withdrew liquidity from the market.
   Table 1: Reserve Money Developments (ZW$ Billions)

																									PRELIMINARY ESTIMATES
																									Week			Week			Week
				May-20			Jun-20			Jul-20			Aug-20			Sep-20			Oct-20			Nov-20			Ending			Ending			Ending
																									31 Dec-20			15 Jan-21			22 Jan-21
	Currency Issued	1.46		1.67		1.90		2.06		2.14		2.12		2.13			2.38			2.38			2.38
	by RBZ
	Banking Sector			12.08			10.42			11.46			10.06			10.25			13.38			15.91			16.38			17.35			16.22
	Deposits at RBZ
	Statutory																1.68		2.01
	(Required)	1.39		0.89		1.05		1.24		1.40					2.20			2.36			2.41
	Reserves
	Banks' RTGS			10.70			9.53			10.41			8.83			8.85			11.70			13.90			14.18			14.99			13.82
	Liquidity
	Other Deposits	0.28		0.58		2.79		0.26		0.34		0.02		0.38			0.00			0.00			0.00

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																									PRELIMINARY ESTIMATES
																									Week			Week			Week
				May-20			Jun-20			Jul-20			Aug-20			Sep-20			Oct-20			Nov-20			Ending			Ending			Ending
																									31 Dec-20			15 Jan-21			22 Jan-21
	Reserve Money			13.82			12.65			16.15			12.38			12.73			15.52			18.42			18.76			19.73			18.60
	Memorandum
	Items
	Currency
	Issued/Reserve			10.5			13.2			11.8			16.6			16.8			13.7			11.6			12.67			12.05			12.80
	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			-8.03			-5.54			-7.86
	Balances (%)
	Monthly Change																21.9		18.7
	in Reserve Money	10.9		-8.4		27.6		-23.3		2.8					-5.59			-4.94			-5.72
(%)
	Government
	Deposits at RBZ			2.09			7.46			6.02			9.52			10.45			5.47			4.65			6.74			10.18			9.67
	(Stock)
	Monthly Inflation	15.1		31.7		35.5		1.4		-0.5		1.4		2.3			2.8			2.8			2.8
(%)
	Inter-Bank			25.00			57.36			76.76			83.40			81.44			81.35			81.82			81.79			82.09			82.08
	Exchange Rate

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