Cash trans­ac­tions down 8% as cash short­ages in­ten­sify RBZ data

Chronicle (Zimbabwe) - - Business -

CASH trans­ac­tions de­clined by eight per­cent from $5,3 bil­lion in July to $ 4,9 bil­lion in Au­gust, as an acute of short­age cash forces more peo­ple to use on­line pay­ment meth­ods, data from the cen­tral bank has shown.

The Re­serve Bank of Zim­babwe (RBZ) noted that the to­tal value of mo­bile and in­ter­net based trans­ac­tions in Au­gust amounted to $766 mil­lion, from $709 mil­lion in July, while cheque trans­ac­tions de­clined by 14 per­cent to $7.9 mil­lion dur­ing the same pe­riod.

“The value of trans­ac­tions pro­cessed through the RTGS sys­tem in­creased by 0.4 per­cent to $3.93 bil­lion in Au­gust 2016, from $3.91 bil­lion recorded in July 2016. RTGS trans­ac­tions vol­umes also reg­is­tered a five per­cent in­crease from 242 373 in July 2016 to 253 938 dur­ing the pe­riod un­der re­view,” said the cen­tral bank in the lat­est monthly re­port.

Zim­babwe’s value of trans­ac­tions pro­cessed through the Na­tional Pay­ment Sys­tems (NPS) rose by 26 per­cent to $1 371,80 mil­lion for the week ended Oc­to­ber 28.

Ac­cord­ing to RBZ data, the in­crease was largely driven by an in­crease in Real Time Gross Set­tle­ment (RTGS) trans­ac­tions, which went up by 32 per­cent dur­ing the pe­riod un­der re­view.

RTGS trans­ac­tions ac­counted for 85,4 per­cent of all the value of elec­tronic trans­ac­tions, ris­ing from $884,84 mil­lion in the pre­vi­ous week to $1 171,72 mil­lion dur­ing the week un­der re­view. In value terms, the dis­tri­bu­tion of pay­ments pro­cessed through the NPS other plat­forms ac­counted as fol­lows: Mo­bile trans­ac­tions (7,31 per­cent); Point of Sale (5,66 per­cent); Au­to­mated Teller Ma­chines (1,49 per­cent) and Cheque (0,12 per­cent).

An­nual broad money sup­ply in­creased by two per­cent­age points to 16.8 per­cent in Au­gust driven by an in­crease in short term de­posits, sta­tis­tics from the cen­tral bank have shown.

De­mand de­posits grew by 30 per­cent while sav­ings were up 11.6 per­cent. Over 30-day de­posits, how­ever, recorded a de­cline of 0.79 per­cent dur­ing the same pe­riod.

On a monthly ba­sis, growth in broad money sup­ply in­creased by 1.7 per­cent from $5,1 bil­lion in July 2016, to $5,2 bil­lion in Au­gust 2016.

An­nual bank­ing sec­tor credit in­creased from $5 bil­lion in Au­gust 2015 to $5, 8 bil­lion in Au­gust 2016.

Month-on-month bank­ing sec­tor credit de­clined by 0.10 per­cent from $5,7 bil­lion recorded in July 2016.

Credit to the pri­vate sec­tor de­clined by 7.1 per­cent from $3,7 bil­lion last Au­gust to $3,4 bil­lion in Au­gust 2016 mak­ing it the sixth con­sec­u­tive year-on-year de­cline since March 2016 as banks im­pose tighter lend­ing con­di­tions. “On a month-on-month ba­sis, credit to the pri­vate sec­tor de­creased by 0.02 per­cent, from $3,4 bil­lion in July to $3,4 bil­lion in Au­gust. De­vel­op­ments on pri­vate sec­tor con­tin­ued to re­flect cau­tion­ary lend­ing by banks, in an en­vi­ron­ment char­ac­terised by a slow­down in eco­nomic ac­tiv­ity,” reads the re­port. — The Source/BH24

Re­serve Bank of Zim­babwe head­quar­ters in Harare

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