In the foreign exchange markets, the Lilangeni demonstrated an appreciating trend against major international currencies, averaging exchanges of E16.32 to the US Dollar, E22.02 to the Pound Sterling and E19.13 to the Euro.
On the domestic front, the economy reflected resilience through the end of the previous year, with real GDP data registering a year-on-year expansion of 5.9% in the third quarter of 2025 and 5.7% in the fourth quarter.
Despite this firm foundation, the ministry stresses that heightened uncertainty continues to threaten near-term performance, as evidenced by the trade balance during the review period, 
which recorded a marginal trade deficit as total imports outpaced exports. Total imports reached E10.065 billion, while total exports amounted to E10.045 billion.
The Bulletin indicates that domestic price pressures remained well-contained during the first quarter of 2026,
with headline inflation averaging 1.9%, primarily driven by moderated food prices and stable costs within the housing and utilities sectors.
Notably, transport inflation plummeted to an average of 0.04%, a sharp decline from the 0.8% recorded in the preceding quarter.
In alignment with these moderated inflationary pressures, the Monetary Policy Consultative Committee maintained an accommodative monetary stance,
keeping the policy rate unchanged during the period to anchor the discount rate at 6.75% and the prime lending rate at 10.25%.
This stable interest rate environment directly supported the 3.3% increase in private sector credit extension, which amounted to a total of E23.2 billion in the first quarter of 2026.
In accordance with the Bulletin, credit channelled to businesses led the expansion, recording a 6.9% increase to reach E12.7 billion,
with the highest credit demand concentrated in key productive sectors like manufacturing and construction,
indicating sustained domestic commercial investment despite a volatile international climate.
