The Reserve Bank of Zimbabwe has said reserve money increased by ZW$3.91 billion during the week ending 5th November 2021, compared to the previous week’s position. The central bank said in a statement:
1. Reserve money technically increased by ZW$3.91 billion to ZW$28.27 billion during the week ending 5th November 2021, compared to the previous week’s position of ZW$24.36 billion.
2. The increase in reserve money was necessitated by an increase of ZW$8.77
billion in required reserves, following the increase in statutory reserve requirement ratios. The Monetary Policy Committee (MPC) meeting of 28th October 2021 raised the statutory reserve ratio on demand and call
deposits from 5% to 10% to reduce money supply.
3. Partially offsetting the increase was a decrease of ZW$4.78 billion in banks ’liquidity (RTGS balances) at the Central Bank, through issuance of open market operations (OMO) instruments.