Monetary Policy Statement Key Highlights:

  • Exports up by 37% from 2.54bn in 2016 to $3.475bn in 2017
  • 80% of total mineral exports were from gold, diamond, tobacco, nickel and ferrochrome
  • Imports up by 4.5% from $4.722bn in 2016 to $4.932bn in 2017
  • Trade deficit down from $2.181bn in 2016 to $1.456bn in 2017
  • Debt inflows decreased from $544.7mln in 2016 to $315.6mln in 2017
  • Net Foreign Direct Investment (FDI) declined from $343m in 2016 to $235.4 in 2017
  • Portfolio investments decreased from $80mln in 2016 to $41mln in 2017
  • Non-Perfoming Loans (NPLs) down from 8.63% in 2016 to 7.08% in 2017. NPL benchmark is 5%
  • Total bank profits increased from $181.06mln in 2016 to $241.94mln in 2017
  • Lending increased from $3.69bln to 3.8bln in June 2017 with 74% of the loan being channeled to productive sectors mainly manufacturing and agriculture.
  • 7% savings bond raises $165mln in 3months
  • Auction system for treasury bills and bonds to be reintroduced
  • RBZ to mop up excess liquidity through open market operations
  • Foreign currency retention levels revised upwards from 20% to 35% for private producers of diamond, platinum and chrome

 

Down the full 2018 Monetary Policy Statement.