FCA Deposits Surge To US$1,85 billion

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By Alois Vinga

FOREIGN Currency Account (FCA) deposits, on a broad money basis, grew by 83,68% to reach a whooping US$1,85 million in the year to October 2021, latest statistics from the Reserve Bank of Zimbabwe have revealed.

In local currency terms, the FCA deposits grew from $97, 62 billion in October 2020 to $179, 31 billion in October 2021.

“This was largely due to an increase in the value of FCAs from US$ 1, 20 billion in October 2020 to US$1,85 billion in October 2021,” the RBZ said.

The developments come against a background where increasing confidence in the banking sector has been surging on the back of responsive policies, part of which have seen the banking public enjoying easy access to their deposited foreign currency.

Such credible policies are expected to see the country’s foreign currency earnings surpassing those reached during the hailed multi-currency era of 2010 to reach a whooping US$8 billion.

Meanwhile, annual broad money stood at $417,56 billion in October 2021, recording an increase of 145,9% compared to the money stock in October 2020 on account of  179,3%, 246,6% and 211,6% in net claims on government, public non-financial corporations and credit to the private sector, respectively.

During the period under review, the Zimbabwe Stock Exchange (ZSE) was characterised by positive trading, resulting in all major indices registering gains.

The all share, Top 10 and Small Cap indices gained 32,04%, 46,28% and 29,81% to close at 11 329,48 points, 7 104,99 points and 330 018,90 points, respectively.

“The proportion of foreign purchases to the value of shares traded rose to 4,43%, compared to 0,31% recorded in September 2021,” the central bank said.

The month under review saw transactions processed through the National Payments System (NPS) increase by 2,79% to close at $801,49 billion, from $779,71 billion recorded in the previous month.

Similarly, NPS transaction volumes rose by 3.52% to close at $129.39 billion, during the month of October 2021.

“Mobile and internet-based transactions stood at $263.30 billion, during the month under analysis, a 7,32% increase from $245,33 billion in the previous month,” the RBZ added.