The value of transactions processed through the RTGS system fell 18 percent to $3,3 billion in August while in tandem the volume of transactions also registered a decrease of 23,1 percent reflective of the low business volumes prevailing in the economy. According to the Reserve Bank of Zimbabwe August review, the national payment system recorded a mixed performance with the significant decline in RTGs transactions but increases in card based and mobile based transactions.
Card based transactions increased to $506,6 million from $487 million in July and the total value of mobile and internet based transactions rose to $524,80 million in August, from $519,7 million in July. This is due to movements of money associated with the holidays and the schools re-opening.
The value of cheque transactions declined to $11,4 million in August from $12,6 million. In terms of monetary developments, the RBZ noted that the annual broad money supply growth rate decelerated to 3,5 percent from 5,9 percent. Monthly broad money supply growth also declined albeit marginally to $4,473 billion to $4,474 billion.
According to the RBZ, the annual growth in broad money was driven by increases across all deposit classes, with the exception of short term deposits. Long term deposits registered the largest annual growth of 17,6 percent, while savings and demand deposits, recorded increases of 3,3 percent and 5,4 percent, respectively. Short term deposits, however, declined by 16,9 percent.
Annual growth in total banking sector credit to the domestic economy rose to 18,8 percent in August 2015 from 18,5 percent in July. On a monthly basis, banking sector credit rose by 1 percent to $5,02 billion in August 2015, from $4,98 billion in July.
On an annual basis, growth in credit to the private sector which makes up the largest proportion of banking sector credit slowed down to 1,4 percent in August from 1,9 percent in July 5. On a month-on-month basis, credit to the private sector also decelerated to $3,78 billion in August from $3,77 billion.
In terms of composition, loans and advances constituted 83,3 percent of the total credit to the private sector, mortgages advanced by building societies, 12,8 percent; other investments, 2,4 percent; bankers’ acceptances, 0,3 percent; and bills discounted, 1,3 percent, in August 2015.
On a sectoral basis, credit was distributed as follows: agriculture (20 percent); distribution (15,9 percent); services including tourism (15,2 percent); manufacturing (14,2 percent); mining (6,1 percent); transport and communications 3,4 percent); and construction (1 percent). Credit to households remained high at 19,7 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, 33,3 percent; consumer durables, 13,5 percent; and vehicle purchases, 3,3 percent. The proportion of borrowed funds utilised for capital development remained low at 4,8 percent of total loans and advances. – Wires.