Brent Crude Oil:

over the review period.

M1 stood at E7.8 billion at the end of March 2023, higher by 2.6 per cent month-on-month and by 3.2 per cent year-on-year. The rise was evident in currency outside depository corporations and transferable (demand) deposits which, grew by 9.5 per cent to E756.6 million and 1.9 per cent to E7.0 billion, respectively.

Quasi money supply reflected a slight decline of 0.02 per cent month-on-month but grew by 4.8 per cent year-on-year to settle at E12.3 billion at the end of March 2023. The month-on-month contraction was driven by time deposits which fell by 0.5 per cent to E10.4 billion.

“A combination of global monetary policy developments, geopolitical events, particularly the ongoing Russia-Ukraine war, and negative domestic economic growth prospects in South Africa posed as the main drivers of the significant depreciation of the Rand/Dollar exchange rate,” he said.

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The Lilangeni has depreciated in pace with the Rand, according to CBE Deputy Governor Felicia Kunene. She claims that as a result, imports from markets outside the Common Monetary Area (CMA) have become more expensive, leading to local inflationary pressures.

“While countries are on a monetary tightening cycle to combat inflation, it is clear that monetary policy cannot effectively address inflationary pressures on its own. “As a result, it is critical that both fiscal and monetary policies work in tandem to address persistent inflationary pressures and ensure longterm economic growth,” she said.

Kunene further stated that the decision by the minister of Finance and the Government of Eswatini to save a portion of the SACU earnings equivalent to E1.5 billion under the stabilisation fund will go a long way towards ensuring that they maintain a healthy level of reserves and protect the Lilangeni peg.