The Central Bank of Eswatini Governor Dr. Phil Mnisi says Central Banks in the Common Monetary Area (CMA) bank evaluate their respective policy direction(s) when making decisions.
He disclosed that Central Banks in the CMA when making decisions for their economies assess domestic, regional, and global factors.
“It is important to mention that within the CMA, each central bank evaluates their policy direction as appropriate for its economy based on the assessment of their domestic, regional, and global factors; what we term “data-driven” decision making whilst avoiding ‘significant’ policy deviations from the anchor economy.”
The Governor clarified this during the Common Monetary Area (CMA) Central Bank Governor’s Symposium held at the Happy Valley Hotel on the 17th of November 2023.
Mnisi noted that they are cognizant of assertions that they take decisions solely based on the bloc, particularly South Africa.
Furthermore, the Governor acknowledged that the country has been affected by global and regional spillover events. He said they include the COVID-19 pandemic, global warming effects, and geopolitical tensions, especially the war in Ukraine.
“Some of the recent global spillover effects to Eswatini include the COVID-19 pandemic, global warming effects, and geopolitical tensions, especially the war in Ukraine. These have impacted the economy in diversified ways ranging from supply chain disruptions; volatility in oil prices and lower food production, all culminating in inflationary pressures. The Kingdom saw the economy contracting by 1.6 percent in 2020 before rebounding to 10.7 percent in 2021. Overall inflation also began an upward trajectory as food and fuel prices rose sharply during this period. Inflation is forecasted to reach 4.9 percent in 2023 from 3.73 percent (in 2021) and 4.8 percent (in 2022). Asset quality as indicated rough NPLs also rose to over 7 percent over the period.”