Reserve Money Update as at 24 December 2021

UPDATE ON RESERVE MONEY

AS AT 24TH DECEMBER 2021

RESERVE MONEY

1. Reserve money fell by ZW$126.89 million to ZW$28.25 billion during the week ending 24th December 2021, compared to the previous week's position of ZW$28.38 billion.
2. The decline in reserve money largely reflected a decrease of ZW$752.05 million in banks' liquidity (RTGS balances) at the Central Bank, which was partially offset by increases of ZW$612.27 million and ZW$12.89 million in required reserves and currency issued, respectively.
3. Government deposits at the Reserve Bank increased by ZW$5.51 billion, resulting in liquidity withdrawal from the market.
   Table 1: Reserve Money Developments (ZW$ Billions)

																										PRELIMINARY ESTIMATES
																										Week			Week			Week
				May-21			Jun-21			Jul-21			Aug -21			Sep -21			Oct -21			Nov -21				Ending			Ending			Ending
																										10 Dec -21			17 Dec -21			24 Dec -21
	Currency	3.65		3.90		4.51		4.75		4.77		4.81		4.91
	Issued by									5.32			5.14			5.15
	RBZ
	Banking
	Sector			22.57			20.95			20.43			23.74			21.47			19.54			23.28			23.43			23.24			23.10
	Deposits at
	RBZ
	Statutory
	(Required)	6.66		7.27		7.86		8.22		9.26		9.54		18.71			19.43			19.49			20.10
	Reserves
	Banks'
	RTGS			15.91			13.68			12.57			15.53			12.22			10.00			4.57			4.00			3.75			3.00
	Liquidity
	Other	0.00		0.00		0.00		0.00		0.00		0.00		0.00			0.00			0.00			0.00
	Deposits
	Reserve			26.22			24.84			24.94			28.50			22.24			24.36			28.19			28.75			28.38			28.25
	Money
															2

																										PRELIMINARY ESTIMATES
																										Week			Week			Week
				May-21			Jun-21			Jul-21			Aug -21			Sep -21			Oct -21			Nov -21				Ending			Ending			Ending
																										10 Dec -21			17 Dec -21			24 Dec -21
	Currency
	Issued/
	Reserve			13.92			15.68			18.09			16.67			18.18			19.76			17.40			18.50			18.10			18.23
	Money Ratio
	(%)
	Currency in
	Circulation	1.1		1.4		1.4		1.5		1.5		1.2		1.1			1.3			1.2			1.2
	/Deposits
	Ratio (%)
	Monthly
	Change in			16.62			-14.00			-8.12			23.52			-21.31			-18.14			-54.30			-11.00			-6.15			-20.04
	RTGS
	Balances (%)
	Monthly
	Change in	15.89		-5.23		0.40		14.23		-7.90		-7.19		15.72			1.76			-1.28			-0.45
	Reserve
	Money (%)
	Government
	Deposits at			7.11			12.12			9.56			10.68			13.84			13.49			16.06			16.76			17.16			22.68
	RBZ (Stock)
	Monthly
	Inflation (%)	2.54		3.88		2.56		4.19		4.73		6.40		5.76			5.76			5.76			5.76
	- ZW$ CPI
	Monthly
	Inflation (%)			1.80			4.49			0.67			1.32			1.94			2.62			2.13			2.06			2.06			2.06
	- Blended
	Inter-Bank	84.73		85.42		85.64		86.06		87.67		97.14		105.67
	Exchange									108.67			108.67			108.67
	Rate

3