BY MBONO MDLULI
MBABANE – The broad money supply for Eswatini for April 2024 is recorded at E20.9 billion.
According to the Monthly Statistical Release March/April 2024 released by the Central Bank of Eswatini (CBE), the broad money supply showed a downward and upward trend last month.
“Broad money supply (M2) amounted to E20.9 billion at the end of March 2024, reflecting a month-on-month contraction of 7.7 per cent and an increase of 4.1 per cent year-on year. The month-on-month reduction in M2 was observed in both narrow money supply and quasi money supply,” said part of the report.
Narrow money supply (M1) declined by 10.0 per cent compared to the previous month and grew by 5.0 per cent relative to the previous year to settle at E8.1 billion at the end of March 2024. The month-on-month contraction in M1 was reflected in transferable (demand) deposits, which fell by a notable 11.0 per cent to E7.4 billion at the end of March 2024.
Emalangeni outside depository corporations, on the contrary, rose by 1.8 per cent to E751.6 million at the end of March 2024. Quasi money supply depicted a contraction of 6.1 per cent month-on-month but grew by 3.5 per cent year-on-year to close at E12.8 billion.
The fall in quasi money, according to the report, was attributed to time deposits, which decreased by 7.4 per cent to E10.8 billion. Savings deposits, on the other hand, increased by 1.1 per cent to E2.0 billion at the end of March 2024.
The report further stated that the liquidity position of the banking industry decelerated by 10.9 per cent month-on month and 1.8 per cent year-on-year to reach E6.8 billion at the end of March 2024. The month-on-month fall in domestic liquid assets was largely depicted in banks’ balances held with the Central Bank as well as government securities. Therefore, the liquidity ratio decreased to 33.4 per cent in March 2024 from 34.7 per cent in February 2024.
