The Central Bank of Eswatini published its December 2024/January 2025 Monthly Statistical Release, showing modest month-on-month growth in credit to the private sector, a sharp contraction in broad money, weaker banking-sector liquidity, and a marked improvement in gross official reserves in January. The discount rate and commercial banks’ prime lending rate were unchanged in January 2025 at 7.00% and 10.50%, respectively. Credit extended to the private sector rose 0.8% month-on-month (6.6% year-on-year) to SZL 20.4 billion in December 2024, driven by business lending (SZL 10.6 billion, up 1.9% month-on-month) while household and NPISH credit declined 0.3% month-on-month to SZL 8.7 billion. Broad money (M2) fell 7.4% month-on-month to SZL 24.5 billion as quasi money declined 14.0% month-on-month on a 16.3% drop in time deposits, partly offset by M1 rising 4.4% to SZL 9.9 billion. Domestic liquid assets decreased 16.1% month-on-month to SZL 8.4 billion and the liquidity ratio fell to 36.5% (from 40.2% in November). Provisional gross official reserves increased to SZL 12.6 billion in January 2025, up 24.4% month-on-month, raising import cover to 2.9 months from 2.4 months in December; valued in special drawing rights, reserves rose to SDR 522.8 million.
Central Bank of Eswatini 2025-02-05
Central Bank of Eswatini reports SZL 12.6 billion January reserves and 0.8% December private sector credit growth while holding rates steady
The Central Bank of Eswatini's December 2024/January 2025 Monthly Statistical Release reports modest growth in private sector credit, a sharp contraction in broad money, and weaker banking-sector liquidity, alongside improved gross official reserves. Credit to the private sector rose 0.8% month-on-month to SZL 20.4 billion, while broad money fell 7.4% to SZL 24.5 billion. The discount rate and commercial banks’ prime lending rate remained at 7.00% and 10.50%, respectively.