By Lwazi Dlamini
As of Friday, June 7, 2024, the country’s Gross Official Reserves stood at E9.4 billion, equivalent to 2.6 months of import cover.
In the short to medium term, the reserve position is expected to remain high, owing to an 11.2% increase in SACU receipts over the current fiscal year.
This was revealed by the Central Bank of Eswatini (CBE) Governor, Dr. Phil Mnisi during the delivery of his Annual Monetary Policy Statement on Thursday at the Royal Villas.
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Giving a background, Mnisi said the Gross official reserves improved markedly in 2023 from the relatively lower levels observed in 2022.
He said this development was attributed to higher SACU receipts during the 2023/2024 fiscal year.
“Notably, the reserves accelerated to reach a high of E9.4 billion, covering 3.0 months of imports in April 2023. In terms of imports, the reserves were within the international threshold of 3 months of import cover.
At this level, the reserves indicated a significant improvement from a low of E7.6 billion and import cover of 2.5 months in December 2022,” Mnisi said.
Mnisi stated that during the first three months of 2024, the reserves maintained higher levels but due to rising imports, the import cover remained below the 3 months threshold.
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At the end of March 2024, the reserves amounted to E7.8 billion sufficient to cover 2.2 months of imports (based on revised import figures).
“As of last week Friday, 7th June 2024, the Gross Official Reserves stood at E9.4 billion, equivalent to 2.6 months of import cover.
In the short to medium term, the reserves position is expected to remain high, owing to an 11.2% increase in SACU receipts over the current fiscal year,” he added.
Mnisi stated that the Quarterly Gross Domestic Product, grew by 7.0% year-on-year (seasonally adjusted) in Q4-2023, slightly higher than the revised growth of 6.8% recorded in Q3-2023.
Growth largely emanated from the tertiary sector, while both the primary and secondary sectors contracted.
“Real GDP growth is expected to marginally increase to 4.9% in 2024, from 4.8% recorded in 2023.
In the medium term, growth is expected to be broad-based, driven by all three sectors of the economy.
Consumer price inflation averaged 5.0% in 2023, marginally higher than the 4.8% recorded in 2022.
The inflation trajectory during the year under review depicted elevated price increases in the first half of the year and a gradual moderation in the second half of the year – broadly in line with food inflation developments,” the Governor stated.
