HARARE,– Zimbabwe’s annual broad money supply (M3) surged 11 percent to $4,403 billion in December from $3,932 billion the year before on the back of a jump in deposits as well as a growth in both foreign and domestic assets, latest data from the central bank shows.

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Coin

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“The growth in broad money was underpinned by increases across all deposit classes,” said the RBZ in the monthly report for December 2014 released on Monday.

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“Short-term deposits registered the largest annual growth of 18.26 percent in December 2014. Long-term, demand, and savings deposits recorded increases of 16.47 percent, 10.13 percent, and 4.59 percent, respectively.”

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A 10.23 percent rise in net foreign assets as well as an 8.18 percent jump in net domestic assets also pushed up money supply in the economy.

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The growth in M3 resulted in an increase in overall domestic credit, as credit to government surged by 44 percent while private sector advances grew four percent.

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“Net credit to government continued to be driven by Treasury Bill (TB) issuances, which registered a 141.81 percent annual growth during the period under review,” the central bank said, adding the increase in TB issuances, reflected a slowdown in government revenue collections as a result of the economic downturn.

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Loans and advances constituted 81.81 percent of total credit to the private sector, followed by mortgages at 13.51 percent with the agriculture sector at 18.85 percent getting the largest share of credit.

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The services sector  at 16.04 percent came in second followed by the manufacturing sector at 15.95 percent, distribution  14.59 percent and mining  7.34 percent while other sector shared the remainder.

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Credit to households accounted for 18.09 percent.

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The use of Real Time Gross Settlement (RTGS) at $4,6 billion in December up from $4,1 billion the previous month, continued to dominated the Zimbabwe Electronic Transfer Settlement System (ZETSS).

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Mobile and internet based transactions also surged to $520,26 million in December 2014, from $462,52 million in November 2014. While card based transactions accounted for $485,15 million in December 2014, compared to $460,34 million in November 2014.

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Cheques valued at $11,53 million were also processed during the month up from $9,33 million in November 2014.