Despite the increase in credit extended to the private sector, there was a decline in credit to subsectors such as mining & quarrying, construction, community social & personal services, as well as transport and communications. The Bank also reveals that the country’s gross official reserves decreased by 9.6% month-on-month to reach E7.9 billion by end of July 2022.
By Ntokozo Nkambule
The Central Bank of Eswatini (CBE) monthly statistical release for June-July 2022 has revealed that credit extended to the private sector grew by 1.9% month-on-month to reach E16.6 billion at the end of June 2022.
The report notes that the increase in the private sector was observed across all subsectors, namely business, households & non-profit serving institutions, as well as other sectors of the economy. “Credit extended to businesses grew by 3.8 percent over the month and 13.9 percent relative to the previous year to close at E8.0 billion at the end of June 2022. Growth in credit to businesses emanated from a rise in credit to distribution & tourism (10.2 percent), agriculture & forestry (9.2 percent), manufacturing (3.9 percent), and real estate (1.8 percent)” notes the report.
The CBE, however, states that there were a decline in credit to the following subsectors; mining & quarrying (-25.7 percent), community social & personal services (-10.4 percent), and construction (-3.0 percent), as well as transport & communications (-0.6 percent).
Meanwhile, the June-July 2022 statistical release notes that the country’s gross official reserves declined by 9.6 percent month on month to reach E7.9 billion at the end of July 2022. “The fall in reserves was mainly due to foreign currency trades between the Central Bank and local banks. The import cover fell from 3.1 months in June 2022 to 2.8 months at the end of July 2022”
Other major highlights in the statistical release observe that the Broad money supply (M2) increased by 2.6 percent month-on-month and declined by 4.6 percent over the year to close at E20.9 billion at the end of June 2022.
Furthermore, domestic liquid assets declined by 1.4 percent over the month and 9.8 percent year-on-year to close at E7.6 billion at the end of June 2022.