Central Bank of Eswatini reports private sector credit growth and a fall in reserves import cover to 2.0 months

The Central Bank of Eswatini's April/May 2026 Monthly Statistical Release showed private sector credit continued to expand in April, while monetary and external positions weakened over the period. Credit to the private sector rose 0.7 per cent month on month and 9.5 per cent year on year to SZL23.3 billion, broad money fell 3.8 per cent from the previous month to SZL26.7 billion, and provisional gross official reserves dropped 13.7 per cent in May to SZL8.8 billion, reducing import cover to 2.0 months from 2.3 months in April. The discount rate remained 6.75 per cent in May and commercial banks' prime lending rate stayed at 10.25 per cent. Credit growth was driven by households and businesses. Household and non-profit institutions serving households lending increased 1.7 per cent month on month to SZL9.6 billion, led by unsecured personal and housing loans, while business credit rose 0.7 per cent to SZL12.8 billion, with the strongest industry growth in mining and quarrying, manufacturing and agriculture, and small and medium enterprise lending up 2.0 per cent to SZL4.4 billion. Net claims on government fell 46.8 per cent to SZL1.0 billion after repayment of the Central Bank advance. The decline in M2 reflected a 9.0 per cent fall in quasi money as time deposits contracted, despite growth in narrow money. Banking sector liquidity also weakened, with domestic liquid assets down 14.0 per cent to SZL9.1 billion and the liquidity ratio falling to 34.5 per cent from 38.4 per cent, mainly because banks held lower balances with the central bank and invested less in government securities. The reserves decline was attributed mainly to foreign currency outflows from trades with commercial banks and the settlement of fiscal obligations.