National Payment System transactions decline nine percent

Source: National Payment System transactions decline nine percent | The Financial Gazette September 27, 2016

THE amount of transactions processed through the National Payment System declined by nine percent to US$6,3 billion in July from US$6,9 billion largely reflective of the illiquid state of the economy, particularly on high value transactions according to the Reserve Bank of Zimbabwe (RBZ)’s latest monthly economic review.

With increasingly tight fiscal space, government, the largest stimulator of aggregate demand, has restricted its expenditure to payment of employee salaries and the servicing of Treasury Bills.

The effects of this are filtering through to the private sector.

“Monthly credit to the private sector decreased by 2,3 percent to US$3,5 billion from US$3,8 billion in June 2016,” said RBZ.

According to the review, the value of RTGS transactions registered a 13 percent decline to US$3,91 billion from US$4,5 billion in the previous month. RTGS transaction volumes also fell from 268 192 in June 2016 to 242 373 in July 2016.

Cash transactions decreased two percent to US$530,6 million in July 2016, from US$543,9 million in June 2016.