Central Bank of Eswatini publishes June–July 2025 monetary statistics showing M2 down 2.0% and official reserves up 45.1%

The Central Bank of Eswatini released its June/July 2025 Monthly Statistical Release, reporting a slight month-on-month decline in private sector credit and broad money in June 2025 and a sharp increase in provisional gross official reserves in July 2025. Credit to the private sector fell 0.05% month-on-month but grew 6.5% year-on-year to SZL21.6 billion, while broad money (M2) declined 2.0% over the month to SZL23.4 billion and rose 3.6% year-on-year. Provisional gross official reserves increased 45.1% month-on-month and 12.0% year-on-year to SZL11.9 billion, raising import cover to 2.9 months from 2.0 months; the discount rate and commercial banks’ prime lending rate were unchanged at 6.75% and 10.25%. Business credit fell 2.2% month-on-month to SZL11.7 billion (up 12.7% year-on-year), while lending to households and non-profit institutions serving households rose 3.3% to SZL8.9 billion, driven by higher unsecured personal loans and motor vehicle loans, with mortgage lending slightly lower. Net government balances with the banking sector rose to SZL2.3 billion, reflecting higher claims on government and lower government deposits. M1 fell 4.5% month-on-month to SZL8.7 billion and quasi money edged down 0.4% to SZL14.6 billion; domestic liquid assets declined 2.1% to SZL7.0 billion but the liquidity ratio held at 30.9%, with loans and advances to deposits at 86.6%. In SDR terms, gross official reserves closed at SDR486.0 million, with the increase linked to the quarterly inflow of Southern African Customs Union revenue. The central bank notes the monthly release is an abstract of data in its Quarterly Review and that figures are subject to revision, including import-cover estimates that use import data with a three-month lag.