GROSS OFFICIAL RESERVES DECLINE BY 4.4% TO E8.7 BILLION

---

• Credit extended to the private sector grows by 1.5% to reach E16.3 billion
• Credit extended to businesses at E7.8 billion by end of May 2022
• Broad money supply grew by 2.4% to reach E20.4 billion at the end of May 2022

---

Photo Credit: https://www.centralbank.org.sz/

By Inside Biz

The Central Bank of Eswatini’s (CBE), Monthly Statistical Release for May-June 2022 has revealed that the country’s gross official reserves have declined by 4.4 % to reach E8.7 billion.

The monthly statistical release notes that these reserves are enough to cover about 3.3 months of imports of goods and services, which is lower than the 3.4 months registered in May 2022. Credit extended to the private sector did, however, grow by 1.5% per month on month to reach E16.3 billion by the end of May 2022. The CBE states that growth in credit provided to the private sector was supported by credit to businesses and households, and non-profit institutions. Credit to other sectors of the domestic economy, on the other hand, contracted over the review month.

Credit to businesses also rose by 4.0% from the previous month and 18.3 per over the year to settle at E7.8 billion at the end of May 2022. “Growth was recorded in credit to the following subsectors; distribution & tourism (15.3 percent), community, social & personal services (7.2 percent), construction (3.4 percent) as well as transport & communication (2.6 percent). However, a fall was recorded in credit to these subsectors; mining & quarrying (-11.4 percent), manufacturing (-1.4 percent), real estate (-1.1 percent), and agriculture & forestry (-0.1 percent)” notes the monthly statistics.

Additionally, credit extended to other sectors amounted to E758.3 million at the end of May 2022, down by 10.4 percent month-on-month and 57.6 percent year on year. “The reduction was observed in credit to other financial corporations and local government, which fell by 17.7 percent and 8.7 percent, respectively. Credit to public non-financial corporations, on the other hand, rose by 4.1 percent over the month under review” notes the monthly statistical release.

The bank also revealed that the broad money supply (M2) grew by 2.4 percent month-on-month and 0.3 percent year-on-year to reach E20.4 billion at the end of May 2022, supported by a quasi-money supply. Narrow money supply (M1), however, declined over the month under review.

---