MBABANE – Eswatini’s foreign reserves surged to E11.9 billion in July 2025, marking a sharp 45.1 per cent rise from June and a 12 per cent increase compared to last year, according to the Central Bank of Eswatini’s (CBE) latest monthly statistical release.
The bank attributed the boost to the quarterly inflow of Southern African Customs Union (SACU) receipts at the start of July. This lifted the country’s import cover to 2.9 months, up from 2.0 months in June. When valued in special drawing rights (SDR), reserves reached SDR486 million, a 44.5 per cent monthly rise.
Credit extended to the private sector slipped marginally by 0.05 per cent month-on-month to E21.6 billion in June, though it remained 6.5 per cent higher year-on-year. The decline stemmed mainly from reduced lending to businesses and other domestic sectors. Loans to businesses dropped 2.2 per cent to E11.7 billion, with the distribution and tourism sector experiencing the steepest fall at 10.4 per cent. Credit to households, however, climbed 3.3 per cent to E8.9 billion, fuelled by a rise in unsecured personal loans and vehicle finance.
Broad money supply (M2) fell by 2 per cent to E23.4 billion in June, tracking the slowdown in private sector credit. Narrow money supply (M1) contracted 4.5 per cent to E8.7 billion, while quasi money dipped slightly by 0.4 per cent to E14.6 billion.
The liquidity position of local banks decreased by 2.1 per cent to E7 billion in June, although it stood 7.3 per cent higher than the previous year. Despite the dip, the liquidity ratio remained unchanged at 30.9 per cent.
Both the discount rate and the commercial banks’ prime lending rate were maintained at 6.75 per cent and 10.25 per cent, respectively, during July.
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