MONTHLY ECONOMIC REVIEW
MARCH 2014
Selected Economic Indicators

Stock Market Developments

Monetary Developments

Inflation

National Payments System

Statistical Tables

INSIDE THIS ISSUE

PAGE
SELECTED ECONOMIC INDICATORS

February

March
Month on
Month
Change
Z.S.E. Mining Index1
39.24
29.51
-24.80%
Z.S.E. Industrial Index1
189.45
176.32
-6.93%
Money Supply (Total Bank Deposits) (US$)2
4.02 billion
4.09 billion
1.80%
Money Supply (M3) Annual Growth2
5.46%
7.78%
1.80%
Yearly Inflation3
-0.49%
-0.91%
-0.22%
Sources:
1 Zimbabwe Stock Exchange
2 Reserve Bank of Zimbabwe
3 ZIMSTAT


STOCK MARKET DEVELOPMENTS

Global stock markets recorded positive performances, despite the rising geopolitical
risks from the Ukrainian crisis and weak economic data indicating that growth in the
world’s second largest economy, China,
could be slowing down. Performance by major African stock markets was, however,
mixed, with the Zimbabwean, Egyptian and
Nigerian Stock Markets registering respective declines of 6.93%, 4%, and 2%. The Johannesburg and Nairobi stock markets, however, gained marginally by 0.9% and 0.3%,
respectively.

The Zimbabwe Stock Exchange’s (ZSE) industrial index reversed the previous month’s
gains, declining by 6.93% between February
and March 2014, ending the period under
review at 176.32 points, compared to 189.45
points in January. On a year to date basis, the
industrial index lost 12.71%.

The mining index also lost 24.80%, to close
at 29.51 points, in March 2014, from 39.24
points in February. On a year on year basis,
the mining index lost 35.55%.

The subdued performance across most counters at the ZSE reflect the general slowdown
in economic activity, particularly in key sectors of the economy such as manufacturing
and mining. The pervasive liquidity shortages continue to exert a dampening pressure, as
most industries struggle to secure medium to
long term funding for retooling and refurbishing obsolete machinery and equipment.


2 3

2 4
The volume of shares traded, however, rose
by 181.15%, from 136.16 million shares in
February 2014 to 382.80 million shares in
March 2014. Total turnover also increased
by 205.63%, due to the absence of special
bargain deals, to close the month under review at US$25.82 million.

Market capitalization declined by 7.06% to
US$4.56 billion, at the end of March 2014,
from US$4.91 billion at the close of February 2014.

MONETARY DEVELOPMENTS
Annual growth in broad money supply increased to 7.78% in March 2014, a 2.32 percentage growth, from 5.46% recorded in
February 2014. The growth in broad money
supply is a rebound from successive slowdowns which characterized the period
August 2013 to November 2013.

The growth in money supply is partially attributed to tobacco sales. As at 28 March
2014, cumulative tobacco sales raked in
US$121.3 million, representing a significant
liquidity inflow into the economy as tobacco
is financed from offshore sources.
On a month -on -month basis, broad money
increased by US$72.2 million (1.8%), reflecting expansions in savings deposits
(US$15.8
million),
demand
deposits
(US$52.7 million) and under 30-day deposits
(US$74.0 million) . Partially offsetting the
increase was a contraction in over 30-day
deposits, by US$70.4 million.

Broad money continues to be dominated by
transitory and short term deposits. As at

3 5
March 2014, demand, savings and under-30
day deposits accounted for over 83% of
money supply.

Credit to the private sector declined by
0.5%, from US$3 627.0 million in February
2014 to US$3 610.4 million in March 2014.
The slowdown reflects constrained lending
by banks on the back of liquidity challenges,
low deposit base and risk aversion due to
increasing non performing loans in the
banking sector.

Outstanding loans and advances were in respect of agriculture (18.6%), distribution
(18.2%), services (16.1%), manufacturing
(14.6%),
mining
(6.3%),
construction
(1.6%) and activities. Households accounted
for 18.1% of total loans and advances to the
private sector. The high proportion of loans
extended to households, compared to other
productive sectors of the economy, reflects
banks’ preferences for lower risk clients, as
these loans are salary based and secured by
stop orders .

Mining and construction industries which require long term loans, received smaller proportion of the loans and advances, as the
banking sector continues to be crippled by
liquidity crunch, and extending ony short term
loans.

Credit to the private sector was mainly utilized for recurrent expenditures, 44.7%; inventory and stocks build up, 34.0%; consumer
durables, 12.5%; and capital expenditures,
7.8%.

INFLATION DEVELOPMENTS

Annual Inflation

The annual headline inflation declined further
to -0.91% in March, from -0.49% in February
2014. The decline was largely attributed to
food prices, which fell by -3.71% in March,
from -3.26% 2014, reflecting weak domestic
demand and tight liquidity conditions.
The slowdown in economic activity, manifested in widespread downsizing of operations, as
well as closure of some companies, has had an
adverse impact on domestic demand.

Month-on-Month Inflation
Month-on-month inflation shed 0.27 percentage points to -0.22% in March, from 0.05%
in February 2014, due to a fall in prices of
both food and non-food items.
Monthly food inflation declined from 0.18%
in February to -0.14% in March 2014, driven
by decreases in the prices of fish and sea
food; sugar, jam, honey, chocolate and confectionery; vegetables; and oils and fats;
among other.
Monthly non-food inflation stood at -0.26%
in March, down from -0.01% recorded in
February, 2014.
The declines in water, electricity, gas and
other fuels; education; as well as furniture
and equipment, depressed non-food inflation
in March 2014.
Inflation Outlook

Inflation is expected to remain subdued, in
the short term, on account of liquidity constraints and subdued economic activity.
NATIONAL
PAYMENTS
SYSTEM
DEVELOPMENTS

Zimbabwe Electronic Transfer Settlement
System (ZETSS)

The value of transactions processed through
the RTGS system increased by 13% to US$3
332.79 million in March 2014 , from US$2
954.93 million in February 2014; while the
volume of transactions also registered an increase of 10%, from 175 092 to 192 020 in
the same period.
Card Systems
The total value of card based transactions
increased by 15.97% to US$336.97 million
in March 2014, from US$290.17 million in
February 2014.

Mobile and Internet Based Transactions

The value of mobile and internet based
transactions also increased by 21.91%, from
US$281.56 million in February 2014 to
US$343.26 million in March 2014.
Cheques

The value of cheque transactions, however,
decreased to US$10.40 million in March
2014, from US$10.73 million in February
2014.


Reserve Bank of Zimbabwe
April 2014

STATISTICAL TABLES
CONTENTS

Table


. Monetary Statistics


1.1 Monetary Aggregates

1.2 Broad Money Survey

1.3 Analysis of Monthly Changes in Money Supply

1.4 Analysis of Yearly Changes in Money Supply

2. Sectoral Analysis of Bank Loans and Advances and Deposits


2.1 Sectoral Analysis of Commercial Banks Loans and Advances 15

2.2 Sectoral Analysis of Merchant Banks Loans and Advances

2.3 Sectoral Analysis of Merchant Acceptances

2.4 Sectoral Analysis of Commercial Banks Deposits

2.5 Sectoral Analysis of Merchant Banks Deposits

3. External Statistics


3.1 Total External Debt Outstanding by Debtor

4. Interest Rates


4.1 Lending Rates

4.2 Banks Deposit Rates

5. Inflation


5.1 Monthly Inflation

5.2 Yearly Inflation

6. Exchange Rates

STATISTICAL TABLES
CONTENTS

Table


. Commercial Banks


7.1 Assets

7.2 Liabilities

8. Accepting Houses


8.1 Assets

8.2 Liabilities

9. Building Societies


9.1 Assets

9.2 Liabilities

10. Zimbabwe Stock Exchange Statistics

11. Savings with Financial Institutions

12. Analysis of Liquid Assets of Monetary Banks

13. ZETSS, Cheques and Cards Activity


13.1 Values of Transactions

13.2 Volumes of Transactions

TABLE 2.1 : SECTORAL ANALYSIS OF COMMERCIAL BANKS LOANS AND ADVANCES


US$ Thousands


AGRICULTURE
CONSTRUCTION
COMMUNICATION
DISTRIBUTION
FINANCIAL
&
FINANCIAL
MANUFACTURING
MINING
SERVICES TRANSPORT
INDIVIDUALS
CONGLOMERATES/1
TOTAL
END OF


INVESTMENTS
ORGANISATIONS

JANUARY

FREBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


1. These are large corporation with business operations covering across a number of sectors.
TABLE 2.2 :SECTORAL ANALYSIS OF MERCHANT BANKS LOANS AND ADVANCES


US$ Thousands


AGRICULTURE
CONSTRUCTION DISTRIBUTION
FINANCIAL
FINANCIAL
MANUFACTURING
MINING
SERVICES TRANSPORT INDIVIDUALS CONGLOMERATES
TOTAL
END OF


INVESTMENT ORGANISATIONS

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


TABLE 2.3 :SECTORAL ANALYSIS OF MERCHANT BANKS ACCEPTANCES


US$ Thousands


AGRICULTURE
DISTRIBUTION
FINANCIAL
FINANCIAL
MANUFACTURING
MINING
SERVICES
TRANSPORT
INDIVIDUALS
CONGLOMERATES
TOTAL
END OF


INVESTMENT ORGANISATIONS

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


TABLE 2.4 : SECTORAL ANALYSIS OF COMMERCIAL BANKS DEPOSITS


US$ Thousands


END OF
AGRICULTURE
CONSTRUCTION
COMMUNICATIONS
DISTRIBUTION
FINANCIAL
&
FINANCIAL MANUFACTURING
MINING
SERVICES TRANSPORT
INDIVIDUALS
CONGLOMERATES
TOTAL


INVESTMENTS
ORGANISATIONS

JANUARY

FEBRUARY

MARCH

263’552.7

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


TABLE 2.5 : SECTORAL ANALYSIS OF MERCHANT BANKS DEPOSITS


US$ Thousands


AGRICULTURE
COMMUNICATIONS
CONSTRUCTION
DISTRIBUTION
FINANCIAL
&
FINANCIAL MANUFACTURING
MINING
SERVICES
TRANSPORT
INDIVIDUALS
CONGLOMERATES
TOTAL
END OF


INVESTMENTS
ORGANISATIONS

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


TABLE 3.1: ZIMBABWE: EXTERNAL DEBT OUTSTANDING BY DEBTOR (INCLUDING ALL


End Period

(US$ millions)


Long-Term External Debt


Government

Bilateral Creditors


Multilateral Creditors

Private Creditors

Public Enterprises

1,092
1,198
1,356
Bilateral Creditors

Multilateral Creditors

Private Creditors

Monetary Authorities

Multilateral Creditors - IMF

Private

1,002
Short-Term External Debt

1,198
1,382
1,289

1,564
Supplier's Credits

Reserve Bank

Private

Total External Debt


Gross Domestic Product

External Debt / GDP


SOURCE: Ministry of
Finance and Reserve Bank
of Zimbabwe

TABLE 4.1 LENDING RATES (percent per annum)1

Commercial Banks
Merchant Banks


Weighted Average Lending
Rates3

Weighted Average Lending
Rates3
End Period
Nominal
Lending
Rates2
Individuals
Corporate
Nominal
Lending
Rates2
Individuals
Corporate

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar


Notes


1. Table revised, to separate weighted lending rates for individuals and corporate bodies.
2. Nominal Lending Rates depict the range of rates quoted by banks.
3. Lending rates exclude rates on staff loans.

TABLE 4.2 : BANKS DEPOSIT RATES (percent per annum)1


COMMERCIAL BANKS
ACCEPTING HOUSES


END OF
SAVINGS
3 MONTHS
3 MONTHS


20122


JANUARY
0.15-5.00
5.00-18.00
10.00-17.00
FEBRUARY
0.15-5.00
5.00-18.00
10.00-17.00
MARCH
0.01-12.00
5.00-20.00
7.00-17.00
APRIL
0.00-12.00
5.00-20.00
8.00-17.00
MAY
0.00-12.00
5.00-20.00
6.00-17.00
JUNE
0.00-12.00
5.00-20.00
6.00-17.00
JULY
0.00-12.00
5.00-20.00
6.00-17.00
AUGUST
0.00-12.00
5.00-20.00
6.00-17.00
SEPTEMBER
0.00-12.00
5.00-20.00
6.00-17.00
OCTOBER
0.00-12.00
5.00-20.00
6.00-17.00
NOVEMBER
0.15-8.00
4.00-20.00
6.00-17.00
DECEMBER
0.15-8.00
4.00-20.00
6.00-17.00

JANUARY
0.15-8.00
4.00-20.00
6.00-17.00
FEBRUARY
0.15-8.00
4.00-20.00
6.00-17.00
MARCH
0.15-8.00
4.00-20.00
8.00-12.00
APRIL
0.15-8.00
4.00-20.00
8.00-12.00
MAY
0.15-8.00
4.00-20.00
6.00-17.00
JUNE
0.15-8.00
4.00-20.00
6.00-17.00
JULY
0.15-8.00
3.00-20.00
6.00-17.00
AUGUST
0.15-8.00
3.00-20.00
6.00-17.00
SEPTEMBER
0.15-8.00
3.00-20.00
11.00-12.00
OCTOBER
0.15--8.00
3.00-20.00
11.00-12.00
NOVEMBER
0.15--8.00
3.00-20.00
11.00-12.00
DECEMBER
0.15--8.00
3.00-20.00
11.00-12.00

JANUARY
0.15--8.00
3.00-20.00
11.00-12.00
FEBRUARY
0.15--8.00
3.00-20.00
11.00-12.00
MARCH
0.15--8.00
3.00-20.00
11.00-12.00


1.
The range of rates qouted by banks during the period.
2.
Three (3) months deposit rates revised to exclude rates on inactive or dormant
accounts.

TABLE 5.1 : MONTHLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX \1
( DECEMBER 2012 = 100)
1. Source: ZIMSTATS. To reflect changing expenditure
patterns, ZIMSTAT introduced a revised CPI basket and
rebased CPI figures to December 2012=100.

NON-FOOD INFLATION
FOOD
INFLATION
ALL

ALCOHOLIC
BEVERAGES
CLOTHING
HSING,
WATER,
FURNITURE
HEALTH TRANSPORT
COMMUNICATION
RECREATION & EDUCATION
RESTAURANTS &
MISC.
TOTAL
NON
FOOD &
ITEMS

& TOBACCO
FOOTWEAR
ELECTRICTY,
GAS
AND


CULTURE

HOTELS
GOODS &
FOOD
NON
ALCOHOLIC
BEVERAGES


& OTHER
EQUIPMENT


SERVICES


FUELS


WEIGHTS


AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


TABLE 5.2 : YEARLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX \1
(DECEMBER 2012 = 100)
1. Source: ZIMSTATS. To reflect changing expenditure
patterns, ZIMSTAT introduced a revised CPI basket and
rebased CPI figures to December 2012=100.

NON-FOOD INFLATION
FOOD
INFLATION
ALL

ALCOHOLIC BEVERAGES
CLOTHING
HSING,
WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNICATION
RECREATION &
EDUCATION
RESTAURANTS &
MISC.
TOTAL
NON
FOOD &
ITEMS

& TOBACCO
FOOTWEAR
ELECTRICTY, GAS
AND


CULTURE
HOTELS
GOODS &
FOOD
NON ALCOHOLIC
BEVERAGES


& OTHER
EQUIPMENT


SERVICES


FUELS


WEIGHTS


JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


TABLE 6 : SELECTED INTERNATIONAL EXCHANGE RATES


SA
BW
JAPANESE
EUROPEAN
POUND
END OF
RAND/1
PULA/1
YEN/1
CURRENCY/2
STERLING/2

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


1. Foreign currency per US Dollar.


2. US Dollar per unit of foreign currency.

TABLE 7.1: COMMERCIAL BANKS - ASSETS


US$ Millions


Liquid Assets


Securities


Loans & Contingent
Other
Non Financial
Total
End of
Notes


Total
Other Balances Advances
Assets
Assets
Assets
Assets

&
Balances
Balances
Balances


Liquid
with RBZ


Coin
with
with Other
at
Trade
Treasury Agric PEs
Assets


at Banks
RBZ
Banks
Foreign
Banks
Bills
Bills

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug.

Sep

Oct

Nov

Dec


Jan

Feb

Mar


TABLE 7.2: COMMERCIAL BANKS - LIABILITIES
US$ Millions


Deposits


Amounts Owing to
Capital
Contingent
Other
Total
Of which


and
Liabilities Liabilities Liabilities Liabilities
to the
End of
Demand
Savings and
Short-term
Long-term
Total
Foreign
Liabilities
RBZ
Other Banks Reserves


Public


Deposits

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar


TABLE 8.1 : ACCEPTING HOUSES - ASSETS
US$ Millions


Liquid Assets


Loans & Contingent
Other
Non Financial
Total
End of
Notes


Total
Other
Balances Advances
Assets
Assets
Assets
Assets

&
Balances Balances Balances


Liquid
with RBZ


Coin
with
with Other
at
Trade
Treasury
Assets


at Banks
RBZ
Banks
Foreign
Banks
Bills
Bills

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar


TABLE 8.2 : ACCEPTING HOUSES - LIABILITIES
US$ Millions


Of which


Deposits


Amounts Owing to
Capital
Contingent
Other
Total
Liabilities to the


and
Liabilities
Liabilities
Liabilities
Public
End of Demand Savings and
Short-term
Long-term
Total
Foreign
Liabilities
RBZ
Other
Banks
Reserves


Deposits

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar


TABLE 9.1 : BUILDING SOCIETIES - ASSETS
US$ Millions


Liquid Assets


Notes
Balances
Trade
Treasury
Total
Mortgage
Other
Other
Non Financial
Total
End of
&
with Other
Bills
Bills
Liquid
Advances
Advances
Assets
Assets
Assets

Coin
Banks


Assets


at Banks

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar


TABLE 9.2 : BUILDING SOCIETIES - LIABILITIES
US$ Millions


Of which

Deposits
Capital
Other
Total
Liabilities to the


and
Liabilities
Liabilities
Public
End of
Savings and
Short-term
Long-term
Total
Reserves


Deposits

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar


Table 10: ZIMBABWE STOCK MARKET STATISTICS


Indices
US$ Millions

Industrial
Mining
Market Capitalisation

Aug
132.27
89.04
3,434.00
Sep
146.00
96.00
3,822.80
Oct
154.47
93.66
4,033,76
Nov
150.16
68.74
3,890.9
Dec
152.40
65.12
3,963.50

Jan
179.34
84.07
4,700.33
Feb
182.3
72.01
4,748.24
Mar
183.88
66.21
4,726.34
Apr
189.66
71.98
4,894.68
May
212.72
73.99
5,471.22
Jun
211.19
73.29
5,436.57
Jul
232.87
66.77
5,9136.78
Aug
181.67
48.73
4,682.27
Sep
200.05
49.90
5,157.20
Oct
209.74
52.68
5,407.42
Nov
213.04
47.02
5,482.03
Dec
202.12
45.79
5,203.13

Jan
189.25
35.40
4,882.11
Feb
189.45
39.24
4,906.94
Mar
176.32
29.51
4,560.29


Source: Zimbabwe Stock Exchange (ZSE)

TABLE 11 : SAVINGS /1 WITH FINANCIAL INSTITUTIONS


US$ Millions


Commercial
Merchant

Building

End of
Banks
Banks
Other/2
Societies
TOTAL

January

February

March

April

May

June

July

August

September

October

November

December


January

February

March


1/ Comprises all deposits other than demand deposits.
2/ Includes People’s Own Savings Bank (POSB).

TABLE 12 : ANALYSIS OF LIQUID ASSETS OF MONETARY BANKS


US$ Millions


Commercial Banks
Accepting Houses


Liquid
Prescribed
Excess
Liquid
Prescribed
Excess

assets
liquid
liquid
assets
liquid
Liquid
End of
held
assets/1
assets
held
assets/1
assets

January

February

March

April

May

June

July

August

September

October

November

December


January

February

March


1/ With effect from May 2012, the prescribed liquid asset ratio was reviewed to 30% of liabilities to the public.

TABLE 13.1 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Values of Transactions (US$ in millions)
MONTH
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Annual Total


Jan

Feb

Mar


TABLE 13.2 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Volumes of Transactions (in thousands)
MONTH
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Annual Total


Jan

Feb

Mar

30.82