QUARTERLY
ECONOMIC
REVIEW


September 2019

CONTENTS

List of Figures
Figure 18: Broad Money Supply Growth Rates and Components of Broad Money in Levels .... 21

List of Tables


1.
OVERVIEW

Global growth is projected to slowdown in 2019,
due to subdued global manufacturing activity and
low productivity growth in advanced economies.
The International Monetary Fund (IMF), in its
October update of the World Economic Outlook
(WEO) for 2019, revised the global growth
projection downwards to 3.0% in 2019.

Economic activities across all sectors of the
Zimbabwean economy were largely constrained,
during the third quarter of 2019. Resultantly, the
local economy is projected to grow by -6.5% in
2019. Overarching challenges such as the
unstable exchange rates, rising inflation, fuel
shortages and energy shortfalls, amid persistent
foreign
currency
shortages,
have
limited
economic activity across all sectors.

Month-on-month inflation, which peaked at 39%
by the end of the second quarter of 2019,
declined to 18% in September 2019. This was
attributed to a decline in non-food inflation.
Though, monthly inflation is declining it is still
high, driven mainly by adverse expectations,
speculation as well as indexation by economic
agents. The implementation of the monetary
targeting regime by the Bank, aimed at
containing reserve money growth, is expected to
ease inflationary pressures.

Total merchandise trade for the third quarter of

amounted
to
US$2,168.7
million,

1 From November 2017, broad money was adjusted by a
reclassification of “lines of credit” that were incorrectly
classified as deposits included in broad money. This
representing
a
25.6%
decline
from
the
US$2,913.3
million,
recorded
in
the
corresponding quarter in 2018. This was on
account of declines in both exports (10.5%) and
imports (35%).

Broad money1 increased from $14 767.89
million in June 2019, to $23 551.73 million in
September 2019. The growth, in part, reflected
valuation changes in foreign currency deposits
included in broad money, in line with exchange
rate depreciation.

The Zimbabwe Stock Exchange (ZSE) was
characterized by bullish sentiments, during the
third quarter of 2019. Resultantly, the All Share
and Top 10 indices gained 27.77 and 20.88 points
to close at 232.52 and 218.09 points,
respectively. ZSE market capitalization rose
from $27.02 billion at the end of the second
quarter to $30.53 billion, at the end of quarter
three of 2019.

The value of transactions processed through the
National Payment Systems (NPS) increased by
83% to $135.06 billion in the quarter ending
September 2019, from $73.85 billion recorded in
the quarter ending June 2019. Similarly, NPS
transaction volumes increased by 12% to 626.88
million in the third quarter of 2019, from 559.20
million recorded during the second quarter.

reduced the stock of money and at the same time reduced
the net foreign assets of Other Depository Corporations.

2. INTERNATIONAL
ECONOMIC
DEVELOPMENTS

Prospects for global economic activity for 2019
remain substantially weak, mainly on account of
rising geopolitical tensions and the protracted
trade disputes between China and the United
States. These developments have increased
uncertainty on global trade and international
cooperation and have taken a toll on business
confidence
and
investment
decisions.
Furthermore, subdued global manufacturing
activity and low productivity growth in advanced
economies have resulted in sluggish global
growth prospects.
The International Monetary Fund (IMF), in its
October update of the World Economic Outlook
(WEO) for 2019, further revised downwards the
global growth projection to 3.0% for 2019. This
is 0.3 percentage points lower than the April
2019 projection, the lowest level since the 2008
global financial crisis.
Global growth is, however, projected to improve
modestly to 3.4% in 2020, largely due to
accelerating growth in emerging markets and
developing economies, which are expected to
offset the projected slowdown in advanced
economies. The protracted trade war between the
United States and China, as well as Brexit remain
major sources of uncertainty among advanced
economies.


2 Zimbabwe growth rates are from Treasury, Reserve Bank
& Zimstat
Table 1 summarizes global economic growth
developments and prospects for selected regions
and countries.

Table 1: Global Economic Growth & Outlook
(%)

(Projection)

(Projection)
World Output
3.6
3.0
3.4
Advanced
Economies
2.3
1.7

1.7
US
2.9
2.4
2.1
Euro Area
1.9
1.2
1.4
Japan
0.8
0.9
0.5
Emerging
Market
&
Developing
Economies
4.5
3.9
4.6
China
6.6
6.1
5.8
India
6.8
6.1
7.0
Sub-Saharan
3.2
3.2
3.6
Zimbabwe2
6.2
-6.5
4.6
Latin America &
the Caribbean
1.0
0.2
1.8
Source: IMF World Economic Outlook: July 2019
Growth for advanced economies is projected to
slow to 1.7% in 2019 and 2020, while real
growth in emerging market and developing
economies is projected to rise from 3.9% in 2019
to 4.6% in 2020. In particular, growth in
emerging markets and developing economies
will be premised on a number of factors,
including an improvement in the global trade
environment, as well as a higher degree of
political stability in some regions.

China’s growth forecast remains subdued, as a
combination of escalating tariffs and weakening
external demand are adding pressure to the
economy. A policy stimulus is expected to offset
some of the negative shocks, and growth is now
expected at 5.8% in 2020, down from 6.1%
expected in 2019.

In sub-Saharan Africa, growth is projected to
improve from 3.2% in 2019 to 3.6% in 2020. The
growth will be mainly driven by non-resourceintensive countries, as commodity prices are
negatively affected by international trade
disputes.

INTERNATIONAL COMMODITY PRICE
DEVELOPMENTS

Subdued global economic activity in the third
quarter of 2019 continued to affect developments
in international commodity prices. Notably,
copper
and
crude
oil
prices
weakened
considerably, with copper price movements
being negatively affected by trade wars between
the US and China. Precious metal prices,
however, strengthened on the back of prospects
of positive demand for gold, from central banks
such as China, India, Turkey and Russia.


Table 2 shows international prices for selected
commodities for the second and third quarters of
2019.


Table 2: International Commodity Prices:
July – September 2019

Source: Bloomberg, BBC, 2019
Precious Metals
During the third quarter of 2019, gold prices
increased by 12.6% to US$1,474.44/oz. from an
average of US$1,309.88 in the second quarter.
Precious metals, especially gold gained support
from strong central bank demand, particularly
central banks from China, India, Turkey, and
Russia Similarly, platinum prices rose by 4.7%
to a quarterly average of US$882.70 per ounce,
during the period under review.
Figure 1 shows the evolution of selected
precious metals for the period from March 2018
to September 2019.


Gold
Platinum
Copper
Nickel
Brent
Crude Oil

US$/oz
US$/oz
US$/tonne
US$/tonne
US$/Barrel

Q2
Average

Jul-19

Aug-19

Sep-19


Q3
Average

2019Q2Q3
Quarterly
Changes


Figure
1:
Precious
Mineral
Prices
(US$/ounce): Mar 2018 – Sept

Source: Bloomberg, 2019

Base Metals
Copper prices declined by 5.0%, from a quarterly
average of US$6,105.79 per tonne in the second
quarter to US$5,801.39 per tonne, in the third
quarter of 2019. Prices remained subdued amid a
sharper-than-expected slowdown in China that
emanated
from
heightened
global
trade
uncertainty. Escalating trade tensions have also
pushed the base metal price down, as global
demand weakens.
Nickel prices rallied on speculative buying, as
investors anticipate that growth in electric
vehicles would boost demand for the metal,
which is used for the manufacture of electric car
batteries. In addition, nickel prices firmed on
fears of supply disruptions, following the
announcement of a ban on nickel ore exports by
Indonesia, one of the world’s largest nickel
producers. Against this backdrop, nickel prices
markedly rose by 24.3%, to a quarterly average
of US$17,654.50 per tonne, during the period
under review.
Figure 2 shows the monthly evolution of base
metal prices for the period from March 2018 to
September 2019.

Figure 2: Base Metal Prices (US$/ton): March
2018 – September 2019
Source: Bloomberg, 2019

Brent Crude Oil
Crude oil prices averaged US$62.28/barrel in the
third quarter of 2019. This represented a 8.8%
decline from the US$68.29/barrel recorded in the
previous quarter. Prices fell largely on account of
slackening global demand, amid heightened risks
of a sharper than expected global economic
slowdown.

Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Gold
Platinum (RHS)


Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Copper
Nickel (RHS)

Figure 3 shows the monthly evolution of crude
oil prices for the period from March 2018 to
September 2019.

Figure 3: Brent Crude Oil Prices (US$/Barrel)


Source: Bloomberg, 2019

MERCHANDISE
TRADE
DEVELOPMENTS
Total merchandise trade for the third quarter of

amounted
to
US$2,168.7
million,
representing a 25.6% decline from US$2,913.3
million recorded in the comparable quarter in
2018. This was on account of declines in both
exports and imports.


Figure 4: Quarterly Merchandise Total Trade
(US$m)


Source: Zimstat, 2019
Merchandise Export Developments
Merchandise exports for the period July to
September 2019 amounted to US$1,023.4
million, a 10.5% decline from US$1,143.7
million recorded in the corresponding period in
2018, as shown in Figure 5.
On a quarter on quarter basis, merchandise
exports for the third quarter of 2019 at
US$1,023.4 million were, 19.0% higher than the
US$860.0 million recorded in the second quarter
of 2019. This was mainly due to the increase in
export earnings for gold, nickel ores &
concentrates, flue cured tobacco and diamonds,
among others, as shown in Table 3.

Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
2,175.3
2,168.7

2019 Q2
2019 Q3

Figure 5: Quarterly Merchandise Exports
(US$)
Source: Zimstat, 2019


3 Nickel ores and concentrates, nickel mattes and
unwrought platinum are components of the platinum group
of metals (PGMs).
Table 3: Quarterly Merchandise Exports
(US$m)
Commodity
2019Q2
US$m
2019Q3
US$m
2019Q2-3
Changes
(%)
2019Q3
Share
of
Total
(%)
Gold

*Nickel ores
and
concentrates3

Flue cured
tobacco

*Ferro-alloys

Diamonds

Articles of
jewellery

Cane sugar

*Unwrought
Platinum

Cotton

Chromium
ores &
concentrates

Other

Total

Source: Zimstat, 2019 & RBZ Calculations, 2019

Gold rebounded during the third quarter on firm
global prices and a narrower gap between the
interbank rate and the parallel market which
helped stimulate the positive performance. Gold
exports constituted about 32.5% of the country’s
exports during the period under analysis. The
country’s export basket continued to be biased
towards
primary
commodities,
which
contributed about 78.1% of export earnings in the
third quarter of 2019. This poses concentration

2018 Q3
2019 Q2
2019 Q3

risk
as
any
unfavorable
movements
in
international prices of primary commodities may
negatively affect the economy.

Major Merchandise Export Destinations
The country’s exports for the quarter under
analysis were mainly destined for the region, in
particular, South Africa, which absorbed about
42.1% of the country’s exports, followed by the
United Arab Emirates (25.7%) and Mozambique
(9.5%).

Table 4 shows the country’s major export
markets, during the period under analysis.

Table
4:
Major
Export
Destinations
3rd Quarter 2019

Country
US$ millions
2019 Q3 Share
(%)
South Africa
430.6
42.1
United Arab
Emirates
262.8
25.7
Mozambique
97.6
9.5
Zambia
14.3
1.4
Swaziland
13.4
1.3
Belgium
12.3
1.2
Botswana
9.9
1.0
Kenya
7.0
0.7
Namibia
4.5
0.4
Hong Kong
2.7
0.3
Other
168.5
16.5
Total
1,023.4
100.0
Source: ZIMSTAT & RBZ Computation


Merchandise Import Developments

Merchandise imports amounted to US$1,145.3
million for the third quarter of 2019, representing
a marked 35.3% decline from US$1,769.6
million recorded in the corresponding period in
2018. The slowdown in import performance was
largely driven by shortages of foreign currency.
Figure 6 shows quarterly merchandise imports
for the second and third quarters of 2019.
Figure 6: Quarterly Merchandise Imports
(US$ m)


Source: Zimstat, 2019
Merchandise imports for the third quarter of
2019 were also 12.9% lower than those recorded
in the second quarter of 2019. This was on
account of notable declines in imports of petrol
(-38.8%), diesel (-24.5%) and crude soya bean
oil (-52.0%). Electricity imports during the third
quarter were, however, higher than in the
preceding
quarter
reflecting
government’s
efforts to augment low domestic power
production.

1,315.3
1,145.3
2019Q2
2019Q3

The country’s imports were mainly composed of
diesel, unleaded petrol, medicines and electricity,
among others as shown in Table 5. Notably,
diesel and petrol imports collectively constituted
about 24.7% of total imports, during the period
under analysis.

Table 5: Quarterly Merchandise Exports
(US$m)

Commodity 2019 Q2
2019 Q3
2019Q22019Q3
2019Q3
Changes
(%)
Share
of Total
(%)
Diesel

Unleaded
Petrol

Medicines

Electricity

Wheat

Rice

Fertilisers
(Urea
&
potassium
sulphate)

Crude Soya
Bean Oil

Maize
(Excluding
Seed)

Other

Total


Major Import Sources
The country’s imports for the third quarter of
2019 were mainly sourced from South Africa
(40.6%); Singapore (23.3%); China (8.4%);
India (4.0%); Mauritius (2.5%) and the United
Arab Emirates (1.6%), as shown in Figure 7.

Figure 7: Major Merchandise Import Sources
(% Share)

Source: ZIMSTAT & RBZ Computations, 2019
TRADE BALANCE
The country’s trade balance narrowed from
US$455.4 million in the second quarter of 2019,
to US$121.8 million in the third quarter, as
shown in Figure 8.


South Africa
Singapore
China
India
Mauritius
U.A.E
Zambia
United Kingdom
Mozambique
Denmark
Ukraine

Figure 8: Merchandise Trade Balance (US$m)


Source: Zimstat, 2018 & RBZ Computations, 2019


3. DOMESTIC
ECONOMIC
DEVELOPMENTS

REAL SECTOR DEVELOPMENTS
Gross Domestic Product
Economic activities across all sectors were
largely constrained, during the third quarter of
2019. This was on account of several challenges
bedevilling
the
economy
which
include
persistent power outages; intermittent fuel
supply; inadequate foreign currency; and an
unstable exchange rate.

Consequently, economic growth was reviewed
further downwards from an initial projection of
-0.2% to -6.5% in 2019. All sectors of the
economy are projected to decline as follows:
agriculture
(-18.0%);
construction
(-14%);
electricity and water (-13.9%); mining (-11.9%);
and manufacturing (-5.9%).
AGRICULTURE
The poor performance of the agriculture sector is
mainly on account of the drought that affected
most crops, and declining aggregate demand that
weighed down the livestock sector. The
exceptional performance of tobacco, however,
partially offset the decline in the agriculture
sector.

Tobacco
As at the end of September 2019, cumulative
tobacco sales at 259.45 million kilogrammes,
surpassed the 252.60 million kilogrammes which
were produced during the same period in 2018.
Depressed tobacco prices, however, resulted in


2019 Q2
2019 Q3
Exports
Imports
Trade Balance

significantly lower value for the 2019 tobacco
crop, compared to the previous season. Table 6
compares tobacco statistics for the third quarter
of 2018 and 2019.

Table 6: Tobacco Sales in 2018 and 2019

%
Variance
Quantity sold
(ton)
252.60
259.45
2.71
Value (US$
million)
737.43
526.73
-28.57
Price US$/kg
2.92
2.03
-30.46
Source: Tobacco Industry and Marketing Board, 2019

Cotton
Seed cotton output declined to 71.38 million
kilogrammes, as at end of the third quarter in
2019,
from
137.85
million
kilogrammes
produced in the corresponding period in 2018.
The decline in the average producer price of seed
cotton to $3.18 per kilogramme in 2019, from an
average of about Z$8.54 per kilogramme in
2018, is likely to threaten the viability of the crop
going forward.

Wheat
The winter wheat crop suffered significant
financing setbacks, resulting in area planted
declining to 23 820 hectares in 2019, from 34 686
hectares planted in 2018. The Command
Agriculture Programme accounted for about
75% of the area planted, with the remaining
hectarage being privately financed. Power supply
challenges disrupted irrigation cycles, resulting
in the writing off 748 hectares of the crop due to
moisture stress.
Resultantly, wheat output for 2019 is expected to
be significantly lower than the 160 000 tonnes
produced in 2018.

Livestock

Livestock Slaughters
Cumulative livestock slaughter statistics from
formal abattoirs, show a remarkable increase in
pig slaughters. Cattle, sheep and goat slaughters,
however, declined over the nine months to
September 2019, compared to the same period in
2018. This outturn is indicative of challenges
faced by the livestock sub-sectors, which include
shortages of grazing pasture, high disease
incidence and high cost of production against
waning demand for meat.

Table 7: Cumulative Livestock Slaughters as
at 30 September 2019.

Cattle
Pigs
Sheep &
Goats

197 457
113 770
17 143


change
-5.88
29.76
-28.71
Source: Ministry of Lands, Agriculture, Water
Climate, and Rural Resettlement, 2019

Cattle
Quarterly cattle slaughters at formal abattoirs in
2019, were consistently lower than in 2017 and
2018. The lower performance was due to high
incidence of diseases such as theileriosis in some
provinces, which resulted in high mortality of

cattle. The weak demand for beef due to high
prices also contributed to low cattle slaughters
during the year. Figure 9 shows quarterly cattle
slaughter statistics for the three quarters of 2017,
2018 and 2019.

Figure 9: Quarterly Cattle Slaughters

Source: Ministry of Lands, Agriculture, Water,
Climate and Rural Resettlement, 2019.

Pigs
Viability challenges due to high cost of
stockfeeds continued to hamper pig production
resulting in culling of breeding stock. This is
reflected by the inordinate increase in pig
slaughters, during the three quarters of 2019.
Figure 10 shows the quarterly pig slaughter
statistics for the three quarters of 2017, 2018 and
2019.


Figure 10: Quarterly Pig Slaughters


Source: Ministry of Lands, Agriculture, Water,
Climate and Rural Resettlement, 2019.

Milk Production
Milk output in the third quarter of 2019 at 20.55
million litres, was 4.6% higher than 19.64
million litres produced in the same period in
2018, as shown in Figure 11. Though milk output
has been increasing, the industry also faces
several challenges which include high cost of
stockfeeds, water and energy.


Q1
Q2
Q3


Q1
Q2
Q3

Figure 11: Quarterly Fresh Milk Output

Source: Ministry of Lands, Agriculture, Water, Climate
and Rural Resettlement, 2019.

2019/2020 Rainfall Forecast

The
Zimbabwe
Meteorological
Services
Department forecast a relatively better 2019/20
rainfall season compared to the previous season.
For the three month period from October to
December 2019, the country is expected to
largely receive normal to above-normal rainfall,
except for Masvingo; Midlands; southern parts
of Manicaland; and Matabeleland South which
are expected to receive normal to below normal
rainfall.

The second half of the season, that is, January to
March 2020, the whole country is expected to
receive normal to below normal rainfall. It is,
therefore, critical for farmers to plant their crops
early to take advantage of the higher rainfall
expected in the first half of the season. Planting
of shorter season varieties as well as drought
tolerant crops is advisable.

MINING
The mining sector underperformed during the
third quarter of 2019, compared to the same
period in 2018. Declines in output were recorded
for gold, coal, granite, platinum and diamonds, as
shown in Table 8.
Table 8: Quarterly Mineral Production
Statistics: 2018-2019

Q3 2018
Q2 2019
Q3 2019
Q3 2019 vs
Q3 2018
Gold (kg)

Platinum (kg)

Palladium
(kg)

Rhodium
(kg)

Iridium (kg)

Ruthenium
(kg)

Diamonds
(cts)

Chrome
(MT)

Nickel (MT)

Phosphate(T)

Coal (T)

Granite (MT)

Source: Chamber of Mines, Ministry of Mines &
FPR 2019

Q1
Q2
Q3
Millions

Gold
Gold output stood at 8 744 kg in third quarter of
2019, about 23% lower than 11 411 kg produced
in the same quarter in 2018. This was, however,
40% higher than the output for the second quarter
of 2019.

Small-scale
producers
were
the
major
contributors to total gold output during the third
quarter of 2019, although their contribution
declined to 66%, compared to about 72% during
the same period in 2018.

Figure 12: Sectorial contribution to gold
output in Q3 2019


Source: FPR, Ministry of Mines & Chamber of
Mines, 2019

Challenges in the mining industry such as
intermittent fuel supplies, and increasing
operational costs mitigated against the gold
producers. Consequently, miners failed to take
advantage of firming international gold prices
that prevailed during the third quarter of 2019.
Deliveries to Fidelity Printers and Refinery
(FPR) were also negatively affected by
smuggling activities.

PGMs
Output for most of the PGM minerals output
declined during the third quarter of 2019.
Platinum output, at 3 159.4 kg in the third quarter
of 2019, was 17.2% lower than 3 813.6 kg
produced in the same quarter in 2018. Similarly,
platinum output was also15% lower than the 3
695.3 kg in second quarter 2019. Similar trends
were also obtained for palladium output which
stood at 2 735.3 kg in the third quarter of 2019,
12.7% lower than the 3 132.3 kg realised in
same quarter in 2018. This was, 11% lower than
3 085.3 kg produced in the second quarter of
2019. Figure 13 shows platinum and palladium
production developments.

Figure 13: Quarterly Platinum and Palladium
Production Developments

Source: Chamber of mines, Kitco.com, World
Bank, 2019


Large
producers
29%
Small Scale
producers
66%
Secondary
Producers
5%

Q3

Q4

Q1

Q2

Q3

Average International prices
(US$/ounce)
Kg
Platinum (Kg)
Palladium (kg)
Average platinum Price (US$/Ounce)
Average Palladium Price (US$/Ounce)2

Diamonds

Diamond output decreased by 22%, from
617 044 carats in the second quarter of 2019 to
479 922.3 carats, in the third quarter of 2019. The
third quarter output was, however, 25.8% lower
than output produced in the same period in 2018.

The underperformance of diamond during the
period under review was largely on account of
reduced throughput at ZCDC, largely due to
cancellation of credit arrangements on account of
the surging inflation. Furthermore, insufficient
investment in exploration and delays in
resuscitating mining operations in the aftermath
of Cyclone Idai in the Chimanimani mining area,
negatively affected production.

Coal

Coal output stood at 0.83 million tonnes in third
quarter of 2019, about 25% below the output
produced in the same period in 2018. The third
quarter of 2019 coal output, however, surpassed
the 0.62 million tonnes in second quarter of 2019.

Whilst the pricing issues were resolved with the
major consumer of thermal coal, Zimbabwe
Power Company (ZPC), the increase in
operational costs on account of inflation is
eroding the gains of the resolution.

Chrome
Chrome output stood at 0.394 million tonnes in
the third quarter of 2019, about 11.9% lower than
output produced in the same period in 2018. The
output of chrome during the second quarter of
2019 was, however, 7% higher than the 0.367
million tonnes produced during the second
quarter of 2019.

The opportunity for producers to boost
production in light of firming international HCF
prices was, however, missed on account of
intermittent power outages during the third
quarter of 2019. This is significant considering
that power constitutes about 50% of the cost of
production in chrome smelting. Chrome was
also affected by the cross-cutting challenges in
the mining sector.

ELECTRICITY

Electricity generation amounted to 1 522GWh, in
the third quarter of 2019. This was a significant
decline from the 2 653GWh produced in the
same period in 2018. The fall in production was
attributed to low throughput from Kariba due to
low availability of water for power generation.
Table 9 shows the quarterly breakdown of power
output by power station.

Table 9: Quarterly Power Output
Station
Q1
Q2
Q3
Kariba
1 599
1 388
609.8
Hwange

839.1
Bulawayo

13.9
Munyati

17.6
Harare

25.0
IPPs

16.6
TOTAL

Source: ZPC, ZERA, 2019.

Cumulative output up to September 2019,
amounted to 6 342 GWh, compared to the
6 598.5 GWh produced during the same period

in 2018, representing a 4% decline in power
generation. This modest contraction contradicts
the serious power shortfalls experienced since
May 2019, which led to an aggressive load
shedding programme, with an adverse impact on
productivity. Figure 14 shows the trend in
quarterly power generation in 2018 and 2019.

Figure 14: Quarterly Electricity Generation
(GWh) 2018 and 2019.

Source: ZPC, ZERA, 2019

INFLATION DEVELOPMENTS

Month-on-month inflation, which had peaked to
39% at the end of the second quarter of 2019,
decelerated to about 18% in August and
September 2019. The decline in monthly
inflation over the quarter were largely driven by
declines in non-food sub-categories.

Although declining, the monthly inflation rate
remained high, driven by persistent speculative
pricing on the back of a depreciating exchange
rate experienced during the third quarter of the
year. Figure 15 shows the trends in monthly
inflation since January 2018.
Figure 15: Monthly Inflation Profile (%)
Source: Zimstat, 2019

Food Inflation

Monthly food inflation declined from a peak of
55.1% in June 2019 to 19.9% in July and ended
the quarter at 19.5%. The largest contributors to
monthly food inflation were bread and cereals;
meat; vegetables; as well as sugar, jam honey,
chocolate and confectionary, sub-categories.
Figure 16 shows the weighted contributions of
the various sub-categories to food inflation
during the third quarter of 2019.

Q1
Q2
Q3


Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19

Figure 16: Food Inflation Contributions (%)

Source: RBZ, Zimstat, 2019

The rise in food inflation during the third quarter
of 2019 was attributed to increases in all the food
sub-categories, save for fish and sea food and
vegetables.

Non-Food Inflation

Monthly non-food inflation decelerated from
21.7% in June 2019, to close the third quarter at
16.6%, largely due to a slowdown in transport,
communication, alcohol and tobacco. Increases
in housing and other utilities, health and
miscellaneous goods and service, however,
partially offset the declines. As shown in Figure
17, housing, water, electricity, gas and other
fuels contributed the largest share to non-food
inflation during the third quarter
Figure 17: Non-Food Inflation Contributions
(%)
Source: RBZ, Zimstat, 2019

Jul-19
Aug-19
Sep-19
Mineral waters, soft drinks, fruit and vegetable juices
Coffee, tea and cocoa
Food products n.e.c
Sugar,jam,honey,chocolate and confectionery
Vegetables
Fruit
Oils and fats
Milk,Cheese,Eggs
Fish and sea food
Meat
Bread and Cereals

Jul-19
Aug-19
Sep-19
Miscellaneus Goods and Services
Restaurants and Hotels
Education
Recreation and Culture
Communication
Transport
Health
Furniture and Equipment
Housing, Water, Electricity, Gas and Other Fuels
Clothing and Footwear
Alcolic Beverages and Tobacco

4. MONETARY DEVELOPMENTS4

Broad money5 stood at $23 551.73 million in
September 2019, up from $14 767.89 million in
June 2019. This was on the back of increases in
transferrable deposits, 65.23%; currency in
circulation6, 46.70%; and negotiable certificates
of deposits, 28.09%.
Foreign currency accounts which form part of the
transferrable deposits, increased by 153.60%
quarter-on-quarter. The increase was largely on
account of exchange rate valuation changes.
Figure 18 shows annual broad money supply
components in nominal terms as well as growth
rates.


4 All monetary numbers are in ZWL$ since the adoption of
the inter-bank foreign exchange market in February 2019.
5 From November 2017, broad money was adjusted by a
reclassification of “lines of credit” that were incorrectly
classified as deposits included in broad money. This
Figure 18: Annual Broad Money Supply
Growth Rates and Components of
Broad Money in Levels


Source: RBZ, 2019
Domestic Credit
On a quarterly basis, net domestic credit
continued on an upward trend, registering a
106.65% increase to close the quarter under
review at $21 168.77 million.
The growth in net domestic credit, was largely
driven by net claims on Government, 38.63%;
and credit to the private sector, 34.06%.
Net claims on Government increased from
$9 42.17 million in June 2019, to $13 061.89
million in September 2019. Credit to the private
reduced the stock of money and at the same time reduced
the net foreign assets of Other Depository Corporations.
6 Currency in circulation includes bond notes and coins
outside the banking system.


ANNUAL GROWTH %
US$ Billion
Currency in Circulation
NCDs
Time Deposits

sector increased to $6 875.50 million in
September 2019, from $5 128.72 million in June
2019.

During the quarter under review, outstanding
credit to the private sector was mainly in respect
of financial organisations and investments,
22.68%;
agriculture,
21.64%;
households,
15.75%; distribution, 11.86%; services, 9.32%;
manufacturing, 8.17%; and mining, 7.64%.

Figure 19 shows the sectoral distribution of
private credit for the nine month period to
September 2019.

Figure 19: Sectoral Distribution of Credit

Source: Reserve Bank of Zimbabwe, 2019
Private sector credit was mainly utilised for
inventory build-up, 21.36%; consumer durables,
14.42%; fixed capital investment, 14.30%; and
pre and post shipment financing, 6.00%. Other
recurrent expenditures accounted for 43.92%,
during the quarter under review.

Interest Rates
Nominal lending rates continued on an upward
trend, ranging between 4.82% and 65.00%
during the quarter under review. Average
maximum interest rates for savings deposits were
quoted at 4.14%, while term deposits of 60-days
and 90-days were at 4.68% and 4.81%,
respectively. The increase in interest rates, was
in line with the adjustment of the Central Bank
accommodation rate from 15% to 50% per
annum. The adjustment reflected the tightening
of the monetary policy stance, a move
necessitated by rising inflationary pressures.

5. STOCK MARKET DEVELOPMENTS

During the third quarter of 2019, the Zimbabwe
Stock Exchange was characterized by bullish
sentiments. The All Share and Top 10 indices
gained 27.77 points and 20.88 points to close at
232.52 points and 218.09 points, respectively.
Market capitalization rose from $27.02 billion at
the end of the second quarter, to $30.53 billion at
the end of third quarter of 2019. The local bourse
gained $18.26 billion worth of capitalization,
year-on-year.

Households
15.75%
Agriculture
21.64%
Mining
7.64%
Manufacturing
8.17%
Distribution
11.86%
Construction
1.60%
Transport
&Communic
ations
1.26%
Services
9.32%
Financial
Org.&Invest
ments
22.68%
Other
0.09%

Figure 20: Market Capitalization


Source: Zimbabwe Stock Exchange, 2019

Figure 21: ZSE All share and Top 10 Indices


Source: Zimbabwe Stock Exchange, 2019


Industrial and Mining Indices

The industrial and mining indices increased by
91.04 and 62.49 points to end the third quarter of
2019 at 774.55 and 317.75 points, respectively.

Developments on the local bourse reflected
increased demand for counters as an investment
destination, to hedge against local currency
depreciation and inflationary pressures.


Figure 22: Zimbabwe Stock Exchange Indices

Source: Zimbabwe Stock Exchange, 2019

Market Turnover
The bullish activity on the local bourse was
reflected in decreased demand for low-tier
counters. As a result, the volume of shares
declined, whilst the value of the shares increased.
The volume of shares decreased by 7.38% to
615.8 million shares in the third quarter of 2019,
from 664.87 million shares traded in the second
quarter of 2019. In terms of values, shares traded,

30-Sep-18
31-Oct-18
30-Nov-18
31-Dec-18
31-Jan-19
28-Feb-19
31-Mar-19
30-Apr-19
31-May-19
30-Jun-19
31-Jul-19
31-Aug-19
30-Sep-19
$ Millions

30-Sep-18
31-Oct-18
30-Nov-18
31-Dec-18
31-Jan-19
28-Feb-19
31-Mar-19
30-Apr-19
31-May-19
30-Jun-19
31-Jul-19
31-Aug-19
30-Sep-19
All Share Index
Top 10 Index

Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Mining
Industrial
Industrial Index
Mining Index

however, increased from $181.85 million in the
second quarter of 2019, to $466.64 million in the
third quarter of 2019.

Foreign investor interest improved, as reflected
by an increase in the net foreign position from
negative $6.47 million to a positive $31.06
million in the third quarter of 2019.


6. PAYMENT,
CLEARING
AND
SETTLEMENT ACTIVITIES

The value of transactions processed through the
National Payment Systems (NPS) in the quarter
ending September 2019 increased by 83% to
$135.06 billion, from $73.85 billion recorded in
the quarter ending June 2019. Similarly, NPS
volumes increased by 12% to 626.88 million
from 559.20 million during the third quarter of
2019.


Compared to the second quarter of 2019, all
payment streams recorded increases in values
and volumes for the quarter ending September
2019, with the exception of POS, cheque and
ATM volumes.

Table 10 provides the statistical information on
various payment streams for the third quarter
ending September 2019.


Table
10:
Consolidated
Transactional
Activities

Values in ZWL$ Million

Q2
Q3
Change
Proportion

RTGS

CASH

CHEQUE

POS

ATMS

MOBILE

INTERNET

TOTAL

Volumes
RTGS

2867.139
52%
0.46%
CASH

5608.001
10%
0.89%
CHEQUE

34.457
-17%
0.01%
POS

ATMs

247.228
-33%
0.04%
MOBILE

INTERNET

1859.864
30%
0.30%
TOTAL

Source: Reserve Bank of Zimbabwe, 2019

LARGE VALUE PAYMENTS
Zimbabwe
Electronic
Transfer
and
Settlement System

The value of transactions processed through the
RTGS system increased by 80% to $77.23

billion, in the quarter ending September 2019,
from $42.87 billion recorded in quarter ending
June 2019. During the same period, the volume
of transactions also registered an increase of 52%
to 2,867,139, from 1,883,561, as shown in Figure
23.

Figure 23: Values and Volumes of RTGS
Transactions

Source: Reserve Bank of Zimbabwe, 2019
SWIFT Foreign Currency Transactions
SWIFT foreign currency payments increased by
17% to $0.8 billion for the quarter ending
September 2019, from $0.69 billion in the
quarter ending June 2019. Similarly, SWIFT
foreign currency receipts increased by 6% to
$0.73 billion, from $0.69 billion, as shown in
Figure 24.

Net foreign currency outflows amounted to
US$68 million in the quarter ending September
2019, from net inflows of US$9.55 million
recorded in the quarter ending 30 June 2019.

Figure
24:
SWIFT
Quarterly
Foreign
Currency Transactions

Source: Reserve Bank of Zimbabwe, 2019
CASH
Over the Counter Cash Withdrawals
The value of cash withdrawals increased by 77%
to $3.22 billion recorded in third quarter 2019,
from $1.82 billion in the second quarter.
Similarly, corresponding volumes increased by
10% to 5.61 million in the third quarter of 2019,
from 5.10 million in the previous quarter, as
shown in Figure 25.


2018 Q2
2018 Q3
2018 Q4
2019 Q1
2019 Q2
2019 Q3
RTGS Values in Billions $
RTGS Volumes in Thousands
Values
Volumes


Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Volumes in Thousands
Value in US$B
Value of Receipts
Value of Payments
Volumes of Payments
Volumes of Receipts

Figure
25:
Over
the
Counter
Cash
Withdrawals

Source: Reserve Bank of Zimbabwe, 2019
Retail Payments

The value of retail transactions increased by 86%
to $57.82 billion in the quarter under review,
from $30.98 billion recorded in the second
quarter of 2019. Similarly, retail volumes
increased by 12% to 624.01 million, during the
quarter ending September 2019, from 557.32
million reported in the quarter ending June 2019.


Figures 26 and 27 show the trend in the values
and volumes of retail transactions from the
quarter second quarter of 2018 to the third
quarter of 2019.

Figure 26: Retail Transaction Values
Source: Reserve Bank of Zimbabwe, 2019

Figure 27: Retail Transaction Volumes
Source: Reserve Bank of Zimbabwe, 2019


Q1

Q2

Q3

Q4

Q1

Q2

Q3

$ BILLIONS
MILLIONS
Volumes
Values

Q2

Q3

Q4

Q1

Q2

Q3
Mobile in Billions
$ Billions
CHEQUE
POS
ATMS
INTERNET
CASH
MOBILE


Q2

Q3

Q4

Q1

Q2

Q3
Mobile Volumes in Millions
Other Retai Volumes in Millions
CHEQUE
POS
ATMs
INTERNET
CASH
MOBILE

Collateral7
The local collateral figure comprises of Cheque,
Zimswitch, Chengetedzai Deposit Corporation
settlement systems. The value of collateral
increased to $213.2 million in the third quarter
ending September 2019, from $160.20 million
recorded in the quarter ending June 2019, as
shown in Figure 28.

Figure 28: Collateral Amounts from March
2018 to September 2019

Source: Reserve Bank of Zimbabwe, 2019

Access Points and Devices
Mobile banking agents increased to 55,404 in the
quarter ending September 2019, from 51,415
reported in the second quarter ended 30 June
2019.

7 The local collateral figure comprises of Cheque, Zimswitch,
Chengetedzai Deposit Corporation settlement systems.
The POS population increased to 118,004 in the
quarter ending September 2019, from 112,523 in
the quarter ending June 2019. ATM population
remained unchanged at 548.

There were 6.32 million active mobile financial
services subscribers registered in the third
quarter of 2019, a 3.6% increase from 6.1 million
registered subscribers, recorded in the second
quarter of 2019.

Table 11 shows payment access points and
devices, from the first to the third quarters of
2019.

2018 Q1
2018 Q2
2018 Q3
2018 Q4
2019 Q1
2019 Q2
2019 Q3
MILLIONS
Cheque
Zimswitch
CDC

Table 11: Payment Systems Access Points and
Devices


Quarter
ending
Mar

Quarter
ending
Jun

Quarter
ending
Sept

Mobile Banking
agents
47,638
51,415
55,404
ATMs

POS
107,067
112,523
118,044
PAYMENT SYSTEM ACCESS DEVICES
Debit Cards
5,116,115
4,762,042
4,770,618
Credit Cards
17,948
17,625
17,845
Prepaid Cards
80,544
93,277
119,633
Mobile Banking
subscribers
6,369,172
6,095,412
6,317,385
Internet Banking
subscribers
364,990
382,203
378,056
Source: Reserve Bank of Zimbabwe, 2019

Figure 29 shows the number of Access Points,
and Figures 30 and 31, the number of access
devices.
Figure 29: Payment Access Points from June
2018 to September 2019


Figure 30: Payment Access Devices from June
2018 to September 2019

Source: Reserve Bank of Zimbabwe, 2019

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
Thousands
POS Population
ATM Population
Mobile Banking Agents

Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Millions
Debit Cards
Mobile Active Subcribers

Figure 31: Access Devices from June 2018 to
September 2019


Source: Reserve Bank of Zimbabwe, 2019
7. FISCAL DEVELOPMENTS

FISCAL DEVELOPMENTS

During the third quarter of 2019, Government
revenue amounted to $6 325.06 million, against
expenditures of $6 265.73 million. This
culminated in a budget surplus of about $59.33
million. Table 12 depicts the summary of the
fiscal position for the third quarter of 2019.


Table 12: Summary of 3rd Quarter Fiscal
Position

$ Millions
Revenue
6 325.06
Tax revenue
6 209.82
Non-Tax Revenue
115.36
Expenditure
6 265.73
Current expenditure
3 521.00
o/w employment costs
2 021.04
Capital Expenditure
2 628.57
Overall Balance
59.33
Source: Ministry of Finance, 2019


Government Revenue
During the third quarter of 2019, tax revenues
contributed about 98% of total revenue, with
non-tax revenue accounting for the remaining
2%. The significant increase in fiscal revenues
also reflected the impact of inflation. Figure 32
shows the structure of Government revenue in
the third quarter of 2019.

Figure 32: Structure of Government Revenue,
$million

Source: Ministry of Finance, 2019

Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Thousands
Credit Cards
Prepaid Cards
Internet
Tax on
Income
and Profit
33%
Excise Duty
16%
Customs
10%
VAT
28%
Other
Indirect
Taxes
13%

During the period under review, taxes on income
and profit continued to dominate tax revenues,
accounting for 33% of total tax revenues. Taxes
on income and profit also surpassed the target of
$1 698.32, mainly due to the on-going
compliance enforcement measures aimed at
recovering tax arrears, which include debt
follow-ups, audits and investigations.


Expenditure Developments

Government spending amounted to $6 265.73
million, in the third quarter of 2019. Current
expenditure accounted for 56% of total
expenditure, with 42% channelled towards
capital expenditure and net lending and the
remaining 2% directed to Provincial councils and
Local Authorities. Table 13 shows expenditure
aggregates during the third quarter of 2018 and
2019.


Table
13:
Third
quarter
Government
Expenditure (US$ million)

Amount
% of
Total
Amount
% of
Total
Employment
costs

Operations

8.8
1 545.64
24.6
Interest
on
debt

Capital
Expenditure
1 249.38

2 628.57
42.0
Source: Ministry of Finance, 2019

Current expenditure

Employment costs for the civil service, pensions
and grant aided institutions amounted to
$2 021.04 million, representing 32% of total
expenditure, lower than the 39%, realised in the
same period in 2018. This was attributed to
containment of employment costs. Resultantly,
the share of Government recurrent expenditures
increased to 24.6% in the third quarter of 2019,
owing to reduction in all the other expenditure
heads.

Capital Expenditure
Capital expenditure and net lending stood at
$2 628.7 million during third quarter of 2019.
This comprised of $1 856.77 million of capital
expenditure and $ 771.80 million of net lending.

Budget Balance

Fiscal developments in the third quarter of 2019
resulted in a budget surplus of $59.33 million.
This compares with balances of $443.24 million
and $360.40 million for the first and second
quarters, respectively.

Figure 33: Budget Balance in 2019 ($billion)

Source: Ministry of Finance, 2019


RESERVE BANK OF ZIMBABWE
December 2019


Q1
Q2
Q3
Billions
Revenue
Expenditure
Balance


STATISTICAL TABLES

1. Depository Corporation Survey S1
2. Central Bank Survey S2
3. Other Depository Corporation Survey S3

4. Liabilities and Assets of the Central Bank
4.1.Reserve Bank: Assets


S4

4.2.Reserve Bank: liabilities S5


5. Other Depository Corporation
5.1.Other Depository Asset S6
5.2.Other Depository Liabilities S7

6. Commercial Banks
6.1.Commercial Banks: Assets

S8
6.2.Commercial Banks: Liabilities
S9
7. Building Societies


7.1.Building Societies: Assets

S10

7.2.Building Societies: Liabilities S11


8. Sectoral Analysis of Commercial Banks
8.1.Sectoral Analysis of Commercial Banks’ Loans and Advances S12
8.2.Sectoral Analysis of Commercial Bank’s Deposits

S13


9. National Payment Systems


9.1.Values of Transactions


S14
9.2.Volumes of Transactions


S14

10. Interest Rates, Security Yields and Prices
10.1. Lending Rates


S15
10.2. Deposit Rates S15


11. Stock Exchange Indices


S16

12. Inflation


12.1. Monthly Inflation


S17
12.2. Quarterly Inflation


S18
12.3. Annual Inflation


S19

13. Balance of Payments
13.1. Cross Border Payments


S20
13.2. Cross Border Receipts


S21

14. External Sector
14.1. External Debt Outstanding By Debtor


S22
14.2. External Debt Outstanding by Source


S2


Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
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,2019
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
TABLE 1: DEPOSITORY CORPORATIONS SURVEY (ZWL$ '000)


S2


Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Net Foreign Assets
-1,555,285.99 -1,455,053.24 -1,541,066.06 -1,758,219.23 -1,766,538.71 -4,676,973.98 -6,110,320.34 -6,756,572.48 -11,352,535.79 -14,602,968.79 -23,287,056.52 -27,352,064.33
-39,349,960.03
Claims on Non Residents

Official Reserves Assets

Other Foreign Assets

Less Liabilities to Non Residents

Short Term Liabilities

Other Foreign Liabilities

Net Domestic Assets (NDA)

Domestic Claims

Net Claims on Central Government

Claims on Central Government

Of which: Securities Other than Shares

Loans

Loans and Advances

Legacy Debt

Export Incentives

Less Liabilities to Central Government

Of which: Deposits

Other

Claims on Other Sectors

Other Financial Corporations

State and Local Government

Public Non Financial Corporations

Private Sector

Claims on Other Depository Corporations

Of which: Loans

Other Liabilities to ODCs

Of which: Aftrades Balances

Securities

Other Items(Net)

Shares and Other Equity

Other Items(Net)

Liabilities to Other Resident Sectors

Deposits and Securities Excluded from Base Money

Monetary Base Incl. foreign currency clearing balances
Monetary Base

Bond Coins

Bond Notes

Liabilities to ODCs

Reserve Deposits

Exess reserves

Of which USD RTGS Revaluations

Private Deposits

Source: Reserve Bank of Zimbabwe,2019
TABLE 2: CENTRAL BANK SURVEY (ZWL$'000)


S3


Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Net Foreign Assets

Claims on Non Residents

Of Which: Foreign Currency

Deposits

Other

Less Liabilities to Non Residents

Of Which: Deposits

Loans

Other

Net Domestic Assets (NDA)

Domestic Claims

Net Claims on Central Government

Claims on Central Government

Securities

Loans

Other
-

-

-

-

-

-

-

-

-

-

-

-

-

Less Liabilities to Central Government

Of which: Deposits

Other

Claims on Other Sectors

Other Financial Corporations

State and Local Government

Public Non Financial Corporations

Private Sector

Claims on the Central Bank


4,187,900.42

4,644,902.11

5,448,316.23
8,140,877.50
9,252,623.62
Currency


98,685.696

126,257.461

232,427.59
184,370.21
124,516.17
Reserves


4,089,214.726

4,518,644.646

5,215,888.64
7,956,507.29
9,128,107.45
Securities


-

-

0.00
0.00
0.00
Other Claims


-

-

0.00
0.00
0.00
Liabilities to the Central Bank


148,760.15

150,275.70

151,973.32
155,014.53
155,934.06
Other Items(Net)


798,393.76

1,269,584.10

1,503,815.17
2,645,835.28
3,063,220.03
Shares and Other Equity


2,453,288.57

3,130,496.35

3,418,099.11
3,949,811.84
5,389,732.10
Liabilities to other ressident sectors


46,518.61

43,639.00

27,408.22
27,999.41
23,286.81
Other Items(Net)


(1,701,413.42)

(1,904,551.24)

-1,941,692.17
-1,331,975.97
-2,349,798.88
Deposits and Securities Included in Broad
Money


12,446,851.79

14,195,821.68

16,484,524.99
18,810,490.79
22,765,919.89
Deposits Included in Broad Money
9,192,282.61

9,163,326.94

9,179,384.09

9,432,073.48

9,249,189.49

9,796,911.59

9,999,066.93

9,999,066.93

12,307,411.86

14,024,153.85

16,316,355.79

18,607,561.81

22,546,030.38

Transferable Deposits


7,782,391.98

8,323,687.16

8,562,013.77


16,987,786.03

20,883,074.13

of which FCAs


418,087.02

1,190,521.05

1,417,836.22


5,737,719.98

9,859,484.27

Other Deposits
1,488,981.24

1,427,834.38

1,430,427.17


1,611,815.34

1,428,886.89

1,640,846.54
1,619,775.77
1,662,956.26
Money Market Instruments
52,419.97

61,703.77

50,864.73

58,584.04

59,302.10

71,792.12

74,503.10

74,503.10

139,439.93

171,667.83

168,169.20

202,928.98

219,889.50

Source:Reserve Bank of Zimbabwe,2019
TABLE 3 : OTHER DEPOSITORY CORPORATIONS SURVEY ( ZWL$ '000)


S4


ZWL$ Thousands
End of
Gold
Other
Total
Treasury Bills
Central
Banks
Other
Govt.
Other
Other Assets
TOTAL
Government
Stock

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

Apr

May

Jun

Jul

Aug

Sep

Source: Reserve Bank of Zimbabwe, 2019
TABLE 4.1: RESERVE BANK - ASSETS
Foreign Assets
Loans and advances
Investments


S5


TABLE 4.2 RESERVE BANK: LIABILITIES
Capital
and
Foreign
general
End of
Bond Notes in
Circulation
Bond Coins in Circulation
Bond Notes and
Bankers Deposits
Other Deposits
Govt. Deposits
Total Deposits
Liabilities
reserve
Other Liabilities
TOTAL
coins* issued

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

Apr

May

Jun

Jul

Aug

Sep

Source: Reserve Bank of Zimbabwe, 2019
*Bond coins first issued in December 2014
* Bond Notes issued on 28 November 2016
ZWL$ Thousands
Deposits


S6


Debt Securities Foreign Liabilities
Capital
Contigent
Other
TOTAL
and
Liablities
Liablities
End of
Demand
Savings
Time Deposits
Total Deposits
Other Depository
Government
Total
RBZ
Other Depository Other Finacial
Reserves
from the public
Corporations
Corporations
Corporations

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe,2019
TABLE 5.2 : OTHER DEPOSITORY CORPORATIONS - LIABILITIES
ZWL$ millions
Deposits
Amounts Owing to


S7


Foreign
Other Assets
Non Financial
TOTAL
End of
Notes
Assets
Bond
&
Balances
Balances with
Balances
Other Claims
Notes &
Coin
with
Other Depository
with
on
Government1
Local Governemt
Public Enterprises
Other2
Mortgages
Government
Other
Coins
RBZ
Corporations
Foreign Banks
Non-residents
Securities
securities

Jun
0.3

3.7

65.9

208.8

9.8

-

165.3

19.0

-

-

387.6

-

452.9

109.6

126.0

1,548.8

Jul
0.4

3.9

105.8

164.6

9.2

-

168.4

17.2

-

-

391.9

-

451.9

110.9

127.3

1,551.5

Aug
0.4

3.1

142.8

152.0

3.9

-

186.7

16.3

-

-

409.3

-

465.5

104.7

127.2

1,611.9

Sep
0.6

1.8

108.4

117.0

6.7

-

193.0

16.1

-

-

412.7

-

475.2

113.4

130.1

1,574.8

Oct
0.6

1.1

145.7

110.0

14.8

-

193.9

15.4

-

-

420.7

-

493.6

149.9

130.4

1,676.0

Nov
0.7

0.9

138.8

128.4

8.7

-

193.6

18.8

-

-

420.9

-

489.0

160.4

133.0

1,693.3

Dec
1.0

2.6

170.6

134.3

9.1

-

195.1

26.8

-

-

402.3

-

516.8

163.2

135.5

1,757.3

Jan
0.9

2.3

197.4

98.7

7.8

-

129.8

34.5

-

-

413.2

-

508.7

144.9

136.1

1,674.3

Feb
1.5

1.8

172.4

123.5

5.5

-

141.3

33.5

-

-

414.8

-

507.9

125.7

135.7

1,663.6

Mar
1.4

3.4

175.9

72.1

14.1

-

212.6

32.8

-

-

411.4

-

539.4

142.8

132.3

1,738.2

Apr
1.1

4.3

185.5

61.9

3.6

-

184.4

32.0

-

-

413.3

-

582.7

141.6

135.2

1,745.7

May
1.0

7.6

196.3

138.2

8.1

-

191.0

30.9

-

-

415.0

-

608.4

128.1

137.4

1,862.0

June
1.2

4.9

188.6

177.8

1.9

-

266.2

30.1

-

-

413.9

-

614.3

124.0

141.5

1,964.5

July
1.8

6.6

207.1

185.1

1.7

-

283.2

33.3

-

-

423.5

-

636.1

128.2

141.1

2,047.7

Aug
1.6

3.7

224.7

145.3

2.4

-

288.9

32.2

-

-

428.2

-

579.4

139.1

143.7

1,989.2

Sep
1.9

2.9

245.6

92.6

20.8

-

291.1

31.2

-

-

430.3

-

650.2

148.1

144.4

2,059.1

Oct
4.9

2.1

220.0

95.8

11.9

-

318.9

30.2

-

-

427.7

-

639.8

154.2

147.0

2,052.5

Nov
3.6

2.9

243.3

35.7

10.4

-

320.7

28.9

-

-

433.5

-

635.7

148.0

145.8

2,008.5

Dec
2.3

4.3

157.4

121.3

10.4

-

339.4

28.0

-

-

444.8

-

645.9

179.7

151.9

2,085.6

Jan
6.3

4.6
108.2

63.5
10.9

-

343.8

27.3
33.6

-

438.0

-

649.3

136.7
151.2

1,973.3

Feb
5.4

17.6
120.6

62.8
18.1

-

339.6

26.5
-

-

416.1

-

696.1

171.1
156.7

2,030.8

Mar
2.6

18.0
126.3

38.6
23.9

-

331.7

25.5
-

-

415.1

-

710.1

172.1
207.4

2,071.2

Apr
3.7

30.6
220.3

85.0
47.6

-

271.6

25.0
-

-

414.1

-

705.0

169.0
276.2

2,247.8

May
3.9

38.4
162.2

115.4
139.0

-

345.5

23.9
-

-

406.2

-

776.6

165.7
363.4

2,540.1

Jun
6.3

69.8
361.6

144.5
132.4

-

265.8

22.6
-

-

421.7

-

873.6

210.5
473.0

2,981.8

Jul
6.5

174.7
473.9

89.7
131.1

-

258.3

22.2
-

-

416.0

-

934.6

203.1
565.6

3,275.8

Aug
5.5

94.5
758.0

60.6
115.5

-

247.4

21.5
-

-

418.1

-

970.6

345.1
567.6

3,604.2

Sep
15.8

180.3
831.8

195.4
104.2

-

267.6

20.9
-

-

499.1

-

1,137.6

528.8
1,042.2

4,823.6

Source:Reserve Bank of Zimbabwe,2019
Notes
1.Government securities include treasuary bills and bonds
2.Includes bankers acceptances, discounted bills and negotiable certificates of deposits.
3.Includes households, other financial corporations,
TABLE 6.1: BUILDING SOCIETIES -ASSETS
ZWL$ millions
Debt Securities
Loans and Advances


S8


Debt Securities
Foreign Liabilities
Capital
Other
TOTAL
and
Liablities
End of
Savings
Time Deposits
Total Deposits
Other Depository
Government
Total
RBZ
Other Depository Other Finacial
Reserves
from the public
Corporations
Corporations
Corporations

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe,2019
Amounts Owing to
TABLE 6.2: BUILDING SOCIETIES -LIABILITIES
ZWL$ millions


S9


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


INVESTMENTS
ORGANISATIONS

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source:Reserve Bank of Zimbabwe,2019
/1 Including the only merchant bank still in operation.
TABLE 7.1 : SECTORAL ANALYSIS OF COMMERCIAL BANKS LOANS AND ADVANCES/1
ZWL$ ('000)


S10


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

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Reserve Bank of Zimbabwe,2019
TABLE 7.2: SECTORAL ANALYSIS OF COMMERCIAL BANKS DEPOSITS
ZWL$ ('000)


S11


End of
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET
End of
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET

Jul
4,805.10 5.70
588.40
29.40 1,601.40 586.40
Jul
521.80 30.00
20,013.70
636.10 61,162.40 382.60
Aug
5,325.10 5.18
590.10
24.70 1,776.40 583.30
Aug
541.50 26.60
20,303.00
595.60 70,771.60 419.10
Sep
6,031.37 5.19
651.11
16.11 2,159.26 731.93
Sep
620.00 27.17
20,731.00
478.00 83,303.00 432.00
Oct
5,991.30 5.40
681.90
19.40 2,401.60 779.20
Oct
609.60 27.20
23,764.60
475.10 92,540.60 478.90
Nov
6,259.70 4.90
666.50
15.90 2,561.80 798.30
Nov
575.30 25.60
22,748.60
347.30 97,945.20 473.00
Dec
5,877.20 3.60
778.40
16.30 3,052.70 1,043.30
Dec
524.20 19.20
26,779.10
347.20 118,198.90 524.80
Annual
Total
61,718.13 69.43
6,628.17
428.06 18,020.56 7,021.72
Annual
Total
5,903.41 319.95 214,857.35 8,121.03 754,742.20 4,248.89

Jan
5,548.05 4.89
663.45
21.29 2,318.80 1,006.05
Jan
548.13 22.73 20,981.21 449.60 100,593.90 501.80
Feb
4,706.60 4.50
594.00
13.90 2,015.11 831.05
Feb
457.19 22.48
18,869.05
292.22 89,584.32 463.78
Mar
6,300.40 4.50
654.20
12.50 2,657.10 864.83
Mar
545.18 23.68
21,996.85
268.41 116,119.95 510.51
Apr
5,786.75 3.28
640.94
11.46 3,002.63 822.58
Apr
505.50 17.38
21,170.05
253.60 117,616.79 456.96
May
7,298.41 4.25
819.74
10.51 3,550.07 968.58
May
611.14 21.22
23,278.20
213.17 137,422.97 496.62
Jun
7,997.28 4.70
779.37
8.29 3,724.31 1,135.49
Jun
553.60 22.46
23,790.00
175.19 156,609.78 502.22
Jul
8,290.00 3.96
790.00
9.39 4,446.68 1,262.53
Jul
560.15 20.07
25,075.47
223.13 169,416.76 559.58
Aug
7,762.86 2.88
811.19
13.98 4,558.54 1,254.96
Aug
553.01 15.15
25,249.87
317.35 164,917.97 518.70
Sep
7,155.04 3.97
842.48
17.01 4,462.40 1,393.08
Sep
542.96 19.37
24,918.01
300.81 161,289.50 511.27
Oct
8,230.50 4.20
821.30
17.90 4,607.38 1,428.20
Oct
571.60 20.40
21,025.40
345.50 161,427.40 495.99
Nov
7,922.50 3.70
657.50
19.90 3,964.78 1,026.70
Nov
477.40 16.70
17,845.40
334.90 133,862.10 430.60
Dec
8,355.20 2.80
917.20
14.60 4,833.80 1,102.90
Dec
478.60 13.00
27,419.10
236.20 161,540.70 409.10

Jan
6,903.02 2.89
1,294.05
16.92 3,608.83 1,056.16
Jan
401.51 12.20
40,613.79
232.61 135,481.07 413.39
Feb
8,336.98 4.04
1,330.58
17.21 3,594.51 1,093.64
Feb
456.54 16.35
27,811.17
226.77 119,081.12 463.62
Mar
9,881.49 3.90
1,399.50
18.27 4,080.65 1,250.55
Mar
525.91 15.42
30,417.55
248.88 142,597.83 441.02
Apr
10,321.38 3.14
1,590.10
13.97 4,949.34 1,408.53
Apr
535.02 13.65
32,092.53
168.79 157,348.28 390.08
May
14,670.32 4.19
1,397.48
11.83 6,692.55 1,897.82
May
642.59 14.66
15,542.62
121.44 166,491.56 494.29
Jun
17,881.21 3.73
1,464.66
30.14 7,130.02 2,539.84
Jun
705.96 13.34
18,012.05
79.60 160,873.03 486.81
Jul
23,309.86 3.70
1,806.45
36.55 9,137.36 3,295.81
Jul
983.53 13.59
20,465.37
99.56 170,823.27 638.17
Aug
23,596.62 2.37
2,181.56
38.47 11,077.65 3,493.56
Aug
872.91 8.99
21,919.77
85.24 179,281.20 542.28
Sep
30,328.13 3.80
3,029.87
51.94 15,112.00 5,337.71
Sep
1,010.70 11.88
22,749.60
62.44 200,441.85 679.42
TABLE 9.1 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Values of Transactions (ZWL$ in millions)
TABLE 9.2 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Volumes of Transactions (in thousands)


S12


End of
Nominal Lending
Rates2
Individuals
Corporate
Savings
3 Months2

Jan
4.45-18.00
9.33
6.99
Jan
0.22-12.00
0.75-8.00
Feb
4.45-18.00
9.57
6.93
Feb
0.22-12.00
0.75-8.00
Mar
4.45-18.00
9.64
6.98
Mar
0.22-12.00
0.75-8.00
Apr
4.00-18.00
9.32
7.08
Apr
0.22-12.00
0.75-8.00
May
4.00-18.00
9.28
7.09
May
0.22-12.00
0.75-8.00
Jun
4.00-18.00
9.32
7.14
Jun
0.22-12.00
0.75-8.00
Jul
4.00-18.00
9.75
6.97
Jul
0.22-12.00
0.75-8.00
Aug
4.00-18.00
9.87
7.10
Aug
0.22-12.00
0.75-8.00
Sep
4.00-18.00
9.56
7.11
Sep
0.22-12.00
0.75-8.00
Oct
4.00-18.00
9.47
7.38
Oct
0.22-12.00
0.75-8.00
Nov
4.00-18.00
9.49
7.38
Nov
0.22-12.00
1.00-8.00
Dec
4.00-18.00
9.48
7.39
Dec
0.22-12.00
1.00-6.75

Jan
4.00-18.00
9.47
7.40
Jan
0.22-12.00
1.00-8.00
Feb
4.00-18.00
9.23
7.30
Feb
0.22-12.00
1.00-6.75
Mar
4.00-18.00
9.23
7.31
Mar
0.22-12.00
1.00-8.00
Apr
4.00-18.00
9.3
7.38
Apr
0.22-12.00
1.00-8.00
May
4.00-22.00
9.31
7.33
May
0.22-12.00
1.00-8.00
Jun
4.00-22.00
9.15
7.67
Jun
0.22-12.00
1.00-8.00
Jul
4.00-35.00
9.54
8.4
Jul
0.22-12.00
1.00-8.00
Aug
4.00-35.00
14.37
18.43
Aug
0.22-12.00
1.00-8.00
Sep
4.00-35.00
14.64
19.81
Sep
0.22-12.00
1.00-8.00
Source:Reserve Bank of Zimbabwe,2019
Notes
3. Lending rates exclude rates on staff loans.
TABLE 10.2 : BANKS DEPOSIT RATES (percent per annum)1
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 10.1: LENDING RATES (percent per annum)1
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.
Weighted Average Lending Rates 3
Commercial Banks
Commercial Banks
End of


S13


End of
All Share
Industrial
Mining
Volume of Shares
Market Turnover
Market Capitalisation

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Zimbabwe Stock Exchange (ZSE),2019
ZWL$ Millions
TABLE 11: ZIMBABWE STOCK MARKET STATISTICS
Indices


S14


FOOD
INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HOUSING,
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


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

Apr

May

Jun

Jul

Aug

Sep

Source :ZIMSTATS, 2019
NON-FOOD INFLATION
TABLE 12.1 : MONTHLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX
( FEBRUARY 2019 = 100)


S15


FOOD INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HSING, WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNIC
ATION
RECREATION &
EDUCATION
RESTAURAN
TS &
MISC.
TOTAL
NON
FOOD &
ITEMS
& TOBACCO
FOOTWEAR
ELECTRICTY,
GAS
AND
CULTURE
HOTELS
GOODS &
FOOD
NON ALCOHOLIC
BEVERAGES
& OTHER
EQUIPMENT
SERVICES
FUELS
WEIGHTS


Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

TABLE 12.3 : ANNUAL INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX
( FEB 2019=100)
NON-FOOD INFLATION
Source :ZIMSTATS, 2019


S16


Agriculture
Horticulture
Manufacturing
Mining
Tobacco
Tourism
Transport &
Other Services
Total
End of
Telecom

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Reserve Bank of Zimbabwe, 2019
Table 13.2: Monthly Cross Border Receipts (US$Millions)