Swazi Observer - - BUSINESS - By Ma­jaha Nkonyane

The bank­ing in­dus­try’s liq­uid­ity po­si­tion at the end of Novem­ber 2018 stood at E5 bil­lion, rep­re­sent­ing growth of 10.5 per cent from Oc­to­ber 2018.

This is ac­cord­ing to the monthly sta­tis­ti­cal re­lease for Novem­ber/ De­cem­ber 2018 re­leased by the Cen­tral Bank of Eswa­tini (CBE).

The re­cent liq­uid­ity po­si­tion is an im­prove­ment in banks’ liq­uid as­sets which em­anated from banks’ bal­ances with CBE, as well as their in­vest­ment in gov­ern­ment se­cu­ri­ties over the month un­der re­view.


Ac­cord­ing to the re­port the liq­uid­ity ra­tio also rose from 27.3 per cent recorded in Oc­to­ber 2018 to 29.3 per cent at the end of Novem­ber 2018. When com­pared over the year, banks’ do­mes­tic liq­uid as­sets grew by 13.0 per cent.

On an­other note, Broad Money Sup­ply (M2) con­tin­ued to grow steadily re­flect­ing a month-on-month growth of 2.4 per cent at the end of Novem­ber 2018 from 1.6 per cent re­alised in Oc­to­ber 2018. The month-on-month in­crease in M2 was driven by quasi money sup­ply, which sur­passed a con­trac­tion in nar­row money sup­ply. Com­pared an­nu­ally, M2 im­proved by 2.4 per cent.

Quasi money sup­ply stood at E12.4 bil­lion at the end of Novem­ber 2018, 4.2 per cent higher than in the pre­vi­ous month. Growth in quasi money was at­trib­uted to both time and sav­ings de­posits. Time de­posits ac­cel­er­ated by 4.5 per cent to set­tle at E10.7 bil­lion while sav­ings de­posits rose by 2.6 per cent to E1.8 bil­lion at the end of the re­view month.

The re­port also re­vealed that Nar­row Money Sup­ply (M1) de­clined by 1.3 per cent month-on-month to set­tle at E5.9 bil­lion at the end of Novem­ber 2018, on ac­count of a re­duc­tion in trans­fer­able de­posits. Trans­fer­able de­posits con­tracted by 2.7 per cent to E5.2 bil­lion over the re­view month. Emalan­geni out­side de­pos­i­tory cor­po­ra­tions, on the con­trary, edged up by 10.0 per cent to E730.3 mil­lion.

“Net claims on gov­ern­ment by the bank­ing sec­tor ex­panded by 69.7 per cent month-on-month to reach E1.4 bil­lion at the end of Novem­ber 2018. The im­prove­ment em­anated from a com­bined ef­fect of a rise in claims on gov­ern­ment 4.7 per cent and a re­duc­tion in gov­ern­ment de­posits held by the bank­ing sec­tor -12.7 per cent. Com­pared an­nu­ally, net claims on gov­ern­ment trended down­wards,” the re­port says.

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