Mbabane – The Central Bank of Eswatini reports that gross official reserves rose to E14.4 billion in October 2025, marking a 34.2 per cent increase from September and a 14.2 per cent year-on-year growth. Reserves’ import cover improved to 3.4 months from 2.5 months in September, supported by Southern African Customs Union receipts and net Rand inflows from trades with commercial banks. In special drawing rights, reserves reached SDR610.8 million, up 34.8 per cent month-on-month and 13.9 per cent year-on-year.
Credit extended to the private sector reached E21.7 billion in September, rising 2.1 per cent month-on-month and 8.9 per cent year-on-year. The largest growth was in credit to other sectors of the domestic economy, up 14.9 per cent month-on-month to E1.1 billion, led by other financial corporations which surged 28.9 per cent to E644.4 million. Credit to local government and parastatals increased modestly to E90.1 million and E402.2 million, respectively.
Business credit stood at E11.6 billion, up 0.9 per cent month-on-month and 12.6 per cent year-on-year. Sectoral gains were strongest in mining and quarrying at 47.0 per cent, agriculture and forestry at 10.2 per cent, and manufacturing at 4.8 per cent, while community, social and personal services fell 6.3 per cent, distribution and tourism 4.7 per cent, transport and communications 3.5 per cent, real estate 1.6 per cent, and construction 0.6 per cent. Credit to small and medium enterprises rose 9.5 per cent to E3.9 billion, making up 33.6 per cent of total business loans, while large enterprise credit fell 3.0 per cent to E7.7 billion.
Household and non-profit institutions serving households credit increased 2.2 per cent month-on-month and 4.5 per cent year-on-year to E9.0 billion, supported by unsecured personal loans up 5.8 per cent to E3.4 billion and motor vehicle loans up 0.8 per cent to E1.3 billion. Mortgage loans declined marginally by 0.1 per cent to E4.2 billion but remained the largest portion at 47 per cent of household credit.
Government net claims with banks rose sharply from E929.1 million in August to E1.6 billion in September, a 72.0 per cent month-on-month increase, driven by higher utilisation of Central Bank credit facilities. Government deposits rose slightly by 0.2 per cent to E6.6 billion.
Broad money supply (M2) reached E26.0 billion in September, rising 0.2 per cent month-on-month and 10.3 per cent year-on-year. Narrow money (M1) increased 11.5 per cent month-on-month and 7.7 per cent year-on-year to E10.3 billion, mainly due to a 13.3 per cent rise in transferable deposits to E9.4 billion. Quasi money fell 6.1 per cent month-on-month but grew 12.1 per cent year-on-year to E15.7 billion.
Domestic liquid assets fell 3.0 per cent month-on-month to E8.7 billion but increased 9.1 per cent year-on-year. The banking sector liquidity ratio dropped to 34.3 per cent from 35.9 per cent in August, reflecting lower balances with the Central Bank partially offset by higher cash in vaults, government securities investments and interbank balances.
The Central Bank reports that the discount rate and commercial banks’ prime lending rate remained steady at 6.75 per cent and 10.25 per cent, respectively.
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