… GROSS RESERVES DOWN 17.8%

MBABANE - Preliminary data indicates that gross official reserves amounted to E8.3 billion at the end of September 2024, reflecting a decline of 17.8 per cent month-on-month and a growth of 9.1 per cent year-on-year.

The month-on-month fall in reserves was largely on account of net Rand outflows from trades with local banks as well as financing of government’s external obligations over the month under review, as mentioned earlier. At this level, the reserves were sufficient to cover 2.2 months of imports, lower than the 2.7 months observed in August 2024. Meanwhile, credit extended to the private sector improved by 1 per cent month-on-month and 7.8 per cent year-on-year to settle at E20.1 billion at the end of August 2024.

The month-on-month rise in private sector credit was underpinned by credit to the other sectors of the domestic economy and the business sector, while credit to households and  non-profit institutions serving households (NPISH) receded. Credit extended to businesses amounted to E10.4 billion in August 2024, higher by 2.1 per cent month-on-month and 11.6 per cent year-on-year.

The month-on-month rise in credit to businesses was discernible in the following subsectors: Construction (22.7 per cent), manufacturing (5.0 per cent), distribution and tourism (4.0 per cent), and agriculture and forestry (3.6 per cent). The increase in credit was, however, partly offset by a decline observed in the following subsectors: Mining and quarrying (-68.9 per cent), community, social and personal services (-1.5 per cent), transport and communication (-1.1 per cent), and real estate (-1.0 per cent).

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