Central Bank of Eswatini monthly release shows private sector credit rising and reserves falling to E8.1 billion

The Central Bank of Eswatini published its May/June 2026 Monthly Statistical Release, showing stronger domestic credit growth alongside weaker reserve and liquidity positions. Credit extended to the private sector rose 2.5 per cent month on month and 10.6 per cent year on year to E23.9 billion in May 2026, supported by higher lending to businesses and to households and nonprofit institutions serving households. Broad money supply stood at E26.5 billion, down 0.7 per cent from April but up 11.3 per cent from a year earlier. Provisional gross official reserves fell 7.2 per cent month on month and 1.3 per cent year on year to E8.1 billion in June 2026, reducing import cover to 1.9 months from 2.0 months in May. Business credit increased 3.2 per cent on the month to E13.2 billion, led by agriculture and forestry, construction, and distribution and tourism, while household and NPISH credit rose 1.9 per cent to E9.8 billion, with growth led by unsecured personal loans. Net claims on government more than doubled to E2.1 billion in May from E1.0 billion in April, driven by a rise in claims on government following an advance from the central bank. Banking sector domestic liquid assets declined 4.3 per cent month on month to E8.7 billion, pushing the liquidity ratio down to 33.0 per cent from 34.5 per cent. The reserve decline was attributed to net rand outflows from trades with local banks and the settlement of government fiscal obligations. The discount rate was 6.75 per cent in June 2026 and commercial banks’ prime lending rate was 10.25 per cent.