i


FEBRUARY 2023

TABLE OF CONTENTS


January

February

Month-on- Month
Change (%)

Reserve Money2 (M0) (ZW$ millions)
122,997.66
204,036.13
65.89
Money Supply2 (M3) (ZW$ millions)
2,697,360.47
2,928,243.29
8.56
Annual Inflation1 (%)

101.5
92.3
-9.2a
Monthly Inflation1 (%)
0.7
-1.6
-2.3a

National Payment System Transactions2
(ZW$ billions)

4,002.19
3,857.23
-3.62
Nominal Lending Rate2
(% per annum)
100.00-240.00
65.00-230.00

Sources:
1. Zimbabwe National Statistics Agency (ZIMSTAT)
2. Reserve Bank of Zimbabwe (RBZ)
a- Percentage point.
SELECTED ECONOMIC INDICATORS

OVERVIEW
The domestic economy was relatively stable
during the month of February 2023, as
evidenced by the decline in month-on-month
inflation, from 0.7% in January 2023 to -1.6%
in February 2023. Annual headline inflation
also declined from 101.5% in January 2023 to
92.3% in February 2023.

Month-on-month, broad money increased by
8.56% in February 2023, compared to 15.36%
recorded in January 2023. Valuation effects on
foreign currency deposits remained the biggest
driver of broad money growth.

International commodity prices were subdued
in the month under review, on account of a
stronger US dollar, as investors remained
concerned by the likelihood of future interest
rate hikes by the U.S Federal Reserve Bank.
Prices of gold, platinum, palladium, copper,
nickel, and crude oil softened, during the month
under review.

During the month under analysis, the local
bourse was characterised by bullish sentiment.
As a result, the All Share, Medium Cap and
Small Cap indices registered gains. The mining
index also increased by 14.55% to 29 207.92
points.

Activity on the National Payment Systems
(NPS) was slightly subdued, with the value of
transactions processed through the system
falling by 3.5% to ZW$3.86 trillion during the
reporting month, from ZW$4.00 trillion
recorded in the previous month.


INTERNATIONAL COMMODITY PRICE
DEVELOPMENTS

In the month under review, prices for gold,
platinum, copper, and crude oil were largely
subdued on account of a stronger US dollar as
investors remained wary of future interest rate
hikes by the U.S. Federal Reserve Bank, in its
quest to tame inflation.

Precious Metals

Gold
Gold prices retreated by 2.3% to US$1,856.03
per ounce in February 2023, from US$1,899.01
per ounce recorded in the previous month.
Prices of the yellow metal retreated as the U.S.
dollar firmed, following the release of robust
employment statistics.

Platinum
Platinum prices eased by 9.4%, from a monthly
average of US$1,054.88 per ounce in January
2023 to US$955.40 per ounce, during the
month under review. The decline was
underpinned by weak industrial demand,
coupled with gloomy investment prospects as
investors rekindled their appetite for riskier
assets.

Palladium
Palladium prices were on a negative trajectory
during the reporting month, amid sluggish
demand from the auto industries. Monthly
average prices declined by 11.0%, from
US$1,735.24 per ounce in January 2023 to
US$1,544.00 per ounce in the reporting month.

Figure

shows
precious
metal
price
developments for the period from February
2022 to February 2023.

Figure 1: Precious Metal Prices (US$/oz.)
Source: Bloomberg, 2022

Base Metals

Copper

Copper prices declined by 1.0%, from
US$9,048.93 per tonne in the previous month
to US$8,954.80 per tonne in February 2023.
Prices were weighed down by growing
uncertainty over economic recovery in China,
the largest user of industrial metals.

Nickel
Nickel prices fell by 5.8%, from a monthly
average of US$28,366.05 per tonne in the prior
month to US$26,721.15 per tonne, during the
month under review. This was, in large part,
due to a stronger US dollar, increasing
stockpiles of the base metal, as well as
slackening demand in China. Figure 2 shows
the developments in base metal prices for the
period from February 2022 to February 2023.
Figure 2: Base Metal Prices (US$/ton)
Source: Bloomberg, 2022

Brent Crude Oil

Brent Crude oil prices increased by a marginal
0.8%, from a monthly average of US$84.15 per
barrel in the previous month to US$83.43 per
barrel in February 2023. This was largely
attributable to a stronger U.S. dollar and fears
of subdued demand in China, as investors
began to doubt the economic impact of the
relaxation of Covid-19 restrictions in China,
the largest oil importer.
Figure 3: Crude Oil Prices (US$/barrel)

Source: Bloomberg, 2022

Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
US$/oz.
Gold
Palladium
Platinum

Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Nickel US$/ton
Copper US$/ton
Copper
Nickel (RHS)

Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
US$/barrel

MONETARY DEVELOPMENTS1

Broad money (M3) stock amounted to ZW$2
928.24 billion in February 2023, compared to
ZW$2 697.36 billion recorded in January 2023.
The money stock was composed of foreign
currency deposits, 59.92%; local currency
deposits, 39.87%; and currency in circulation,
0.21%. Figure 4 shows the composition of
money supply.
Figure 4: Composition of Money Supply
Source: Reserve Bank of Zimbabwe, 2022

Month-on-month, broad money growth slowed
to 8.56% in February 2023, compared to
15.36% recorded in January 2023. The growth
largely reflected increases of ZW$127.93
billion and ZW$101.55 billion in foreign
currency accounts (FCAs) and local currency
deposits, respectively.
During the month under review, domestic
claims rose by 10.92%, compared to 15.51%
recorded in the previous month. The growth in
domestic claims was largely due to increases of
ZW$183.83 billion and ZW$13.90 billion in

1All monetary numbers valued in ZW$ since the
adoption of an interbank market determined exchange
rate in February 2019.
credit to the private sector and net claims on
Government, respectively.
On an annual basis, broad money registered an
increase of 478.56%, up from 473.37% in
January 2023, largely driven by exchange rate
revaluation. The foreign currency component
of broad money increased by 677.10%, while
the local currency component increased by
318.67%.
The growth in foreign currency deposits from
ZW$225.78 billion in February 2022 to ZW$1
754.51 billion in February 2023, was largely
attributable to revaluation changes due to
exchange rate movements. The exchange rate
depreciated by 616.93%, from ZW$124.02 per
US$1 to ZW$889.13 per US$1, over the period
February 2022 to February 2023.
Net credit to Government and credit to the
private sector increased by ZW$388.00 billion
(529.72%)
and
ZW$1
254.24
billion
(473.97%), respectively, over the year to
February 2023.
Credit to the private sector was mainly
channeled to households and agriculture, which
received 22.76% and 22.60% of the total credit,
respectively.
The
manufacturing
and
distribution sectors received 13.44% and
11.46% of the credit, respectively. Private
sector credit shares for the rest of the economic
sectors are shown in Figure 5.


Local
Currency
Transferabl
e deposits
29.30%
Foreign
Currency
Deposits
59.92%
Time
Deposits
10.03%
Currency in
Circulation
0.21%
NCDs
0.54%

Figure 5: Distribution of Private Sector
Credit

Source: Reserve Bank of Zimbabwe, 2022

Credit to the private sector was largely utilized
for recurrent expenditures, 31.57%; inventory
build-up,
30.21%;
and
fixed
capital
investments, 17.44%.

STOCK MARKET DEVELOPMENTS

Zimbabwe Stock Exchange

The Zimbabwe Stock Exchange (ZSE) was
characterized by positive trading for the third
consecutive month, during the month of
February 2023.

As a result, the ZSE All Share, Top 10, Top 15,
Medium Cap and Small Cap indices added
25.14%, 22.85%, 26.70%, 30.64%, and 26.67%
to close at 28 548.02 points, 16 983.33 points,
29 207.92 points, 62 970.45 and 631 204.30
points, respectively.

Similarly, the mining index added 14.55% to
close the month at 29 207.92 points, compared
to 25 496.86 points recorded in January 2023.
On a year-on-year basis, the ZSE All Share,
Top 10, Top 15, Medium Cap and Small Cap
indices grew by 90.44%, 70.63%, 79.65%,
156.32% and 55.26%, respectively. The mining
index also increased by 214.06%, from
9 300.03 points recorded in the comparable
month in 2022.

Figure 6: ZSE All Share, Top 10 and Mining
Indices

Source: Zimbabwe Stock Exchange, 2022

The cumulative volume and value of shares
traded on the ZSE increased by 59.55% and
109.75% to 164.01 million shares and
ZW$24.41 billion, respectively. This compares
to 102.79 million shares and ZW$11.64 billion
recorded in the prior month, respectively.
The proportion of foreign purchases to the
value of shares traded, also improved to
15.49%, from 7.13% in January 2023.
Concomitantly, net foreign position improved
from -ZW$2.80 billion in the preceding month,
to -ZW$1.50 billion in reporting month.
Households
22.76%
Agriculture
22.60%
Mining
9.97%
Manufacturing
13.44%
Distribution
11.46%
Construction
1.79%
Transport &
Communicat
ions
2.14%
Services
10.18%
Financial Org.
& Investments
5.64%
Other


28-Feb-22
31-Mar-22
30-Apr-22
31-May-22
30-Jun-22
31-Jul-22
31-Aug-22
30-Sep-22
31-Oct-22
30-Nov-22
31-Dec-22
31-Jan-23
28-Feb-23
All Share Index
Top 10 Index
Mining Index

Figure 7: ZSE Monthly Volumes and Values
Traded

Source: Zimbabwe Stock Exchange, 2022

As a result of bullish sentiments exhibited on
the ZSE during the month of February 2023, the
market added ZW$116.29 billion, or 4.73%
worth of capitalization to close at ZW$2 576.32
billion. On a year-on-year basis, ZSE
capitalization grew by ZW$713.30 billion or
38.29%, from ZW$1 863.09 billion recorded in
February 2022.

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX)
experienced losses in the month of February
2023. As a result, the VFEX All Share index
lost 3.48% to close at 107.24 points, from
111.11 points recorded in the prior month.

However, on an annual basis, the VFEX All
Share Index added 2.86%, from 104.26 points
recorded in February 2022.
Figure 8: Victoria Falls Stock Exchange All
Share Index

Source: Victoria Falls Stock Exchange (VFEX),

VFEX Market Capitalization

Despite the losses incurred on the VFEX during
the month under review, market capitalization
increased by 70.63% to US$1.08 billion,
compared to US$0.63 billion recorded in
January 2023. This largely emanated from new
listing of Innscor Africa Limited shares, which
resulted in an increase in the number of
outstanding issued stock.
INFLATION OUTTURN
Annual Inflation

Annual headline inflation continued to slow
down, declining from 101.5% in January 2023
to 92.34% in February 2023. This followed
declines in both annual food and non-food
inflation.

Annual food inflation fell from 153.3% in
January 2023 to 136.85% in February 2023.
Year-on-year,
non-food
inflation
also


Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
VALUE TRADED ($ MILLIONS)
VOLUME TRADED (MILIONS)
Volume
Value

01-Feb-22
01-Mar-22
01-Apr-22
01-May-22
01-Jun-22
01-Jul-22
01-Aug-22
01-Sep-22
01-Oct-22
01-Nov-22
01-Dec-22
01-Jan-23
01-Feb-23

decelerated from 74.21% in January 2023 to
68.11% in February 2023. This was largely on
account of declines in housing, water,
electricity and gas and other fuels.

Monthly Inflation

Monthly inflation fell from 0.7% in January
2023 to -1.6% in February 2023, on account of
declines in both food and non-food inflation.

Month-on-month food inflation decelerated
from 0.40% in January 2023 to -1.58% in
February 2023. Monthly non-food inflation fell
from 1.0% in the preceding month to -1.63% in
the reporting month.

Figure

shows
monthly
inflation
developments for the period from September
2021 to February 2023.

Figure 9: Month-on-Month Inflation (%)

Source: ZIMSTAT, 2023

NATIONAL PAYMENTS SYSTEM

The aggregate value of transactions processed
through the National Payment Systems (NPS)
stood at ZW$3.86 trillion in February 2023,
down from ZW$4.00 trillion recorded in the
previous month. NPS transaction volumes
decreased by 10% to 57.0 million in the month
under analysis.

Zimbabwe Electronic Transfer Settlement
System (ZETSS)

The value of Real Time Gross Settlement
(RTGS) transactions declined by 7.24% to
ZW$3.05 trillion in February 2023, from
ZW$3.1 trillion reported in the previous month.
Figure 10: ZETSS Volumes and Values

Source: Reserve Bank of Zimbabwe, 2022

Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Food and non alcoholic beverages
Non food
All Items


Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Value in ZW$ Billions
Volume in Thousands
Volume
Value

Cash Transactions

Cash-based
transactions
increased
from
ZW$173.09 billion in January 2023 to
ZW$174.72 billion in February 2023.

Mobile and Internet Based Transactions

Mobile
and
internet-based
transactions
amounted to ZW$1.45 trillion, during the
month under analysis, representing an increase
of 7.58% from ZW$1.35 trillion recorded in
January 2023.


Card Based Transactions

Card-based transactions decreased by 4.96% to
ZW$293.11 billion in February 2023, from
ZW$309.15 billion recorded in the previous
month.


APRIL 2023

RESERVE BANK OF ZIMBABWE

Statistical Tables

Monetary Statistics
1. Depository Corporations Survey

2. Central Bank Survey

3. Other Depository Corporations Survey

Other Depository Corporations

4.1 Assets

4.2 Liabilities

Commercial Banks
5.1 Assets

5.2 Liabilities

Building Societies
6.1 Assets

6.2 Liabilities

Sectoral Analysis of Bank Loans and Advances and Deposits

7.1 Sectoral Analysis of Commercial Banks Loans and Advances

7.2 Sectoral Analysis of Commercial Banks Deposits

Interest Rates

8.1 Lending Rates

8.2 Banks Deposit Rates

Inflation

9.1 Monthly Inflation

9.2 Yearly Inflation

External Statistics
10. Exchange Rates

Zimbabwe Stock Exchange
11. Zimbabwe Stock Market Statistics

National Payments System Statistics


12.1 Values of Transactions

12.2 Volumes of Transactions

TABLE 1: DEPOSITORY CORPORATIONS SURVEY ($'000)
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Net Foreign Assets

Central Bank(net)

Foreign Assets

Foreign Liabilities

Other Depository Corporations(net)

Foreign Assets

Foreign Liabilities

Net Domestic Assets (NDA)

Domestic Claims

Claims on Central Government(net)

Claims on Central Government

Central Bank

ODCs

Less Liabilities to Central Government

Central Bank

ODCs

Claims on Other Sectors

Other Financial Corporations

State and Local Government

Public Non Financial Corporations

Private Sector

Central Bank

ODCs

Other Items(Net)

Shares and Other Equity

Liabilities to Other Financial Corporations

Restricted Deposits

Deposits and Securities Excluded from Base Money

Other Items(net)

Broad Money-M3

Securities Other than Shares Included in Broad
Money

Broad Money-M2

Other Deposits

Narrow Money-M1

Transferable Deposits

Of which Foreign Currency Accounts

Currency Outside Depository Corporations

Memorandum Items
Reserve Money

FCAs as a Percentage of Deposits in M3

End Period Exchange Rate

Source: Reserve Bank of Zimbabwe, 2023
Notes:
(i) Depository corporations survey - formerly Monetary Survey.
(ii) Broad money redefined using IMF's Monetary and Financial Statistics Manual of 2000. Major changes include exclusion of Government deposits held by banks from broad money.
(iii) Transferable deposits made up of demand and savings deposits.
(iv) NCDs are also referred to as securities included in broad money.
(v) All classes of time deposits, short and long term are classified as time deposits, which are also termed other deposits.
(vi) Credit to the private sector now excludes claims on other financial corporations, as well as claims on state and local government (local authorities)
(vii) Depository corporations made up of the Central Bank and other depository corporations
(viii) Other depository corporations (ODCs) - Commercial banks, merchant banks, building societies and POSB.
(ix) In December 2017, the statistics were adjusted in restrospect by reclassifying Securities issued under Aftrades from claims on government to claims on central bank
(x) In December 2017, the statistics were adjusted in restrospect by reclassifying amounts accessed by banks under the Aftrades from liabilities to Other Depository corporations and Other Financial Corporations to liabilities to Central Bank
(xi) In December 2018, statistics were revised from November 2017 due to reclassification of lines of credit (foreign liabilities) that were initially classified as deposits included in broad money
(xii) All monetary and financial statistics are valued in ZWL$ since the introduction of the interbank foreign exchange market in February 2019