The Central Bank of Eswatini (CBE) has reported an increase in gross official reserves for August 2026 alongside continued growth in credit extended to the private sector, according to the July/August 2026 Monthly Statistical Release.
The provisional data indicates varied movements across key monetary indicators, with gains recorded in reserves and broad money supply, while domestic liquid assets declined over the month.
The Statistical Release notes that provisional gross official reserves stood at E10.4 billion at the end of August 2026. This reflects a 3.9 per cent increase from July 2026. 
On a year-on-year basis, however, reserves declined by 12.0 per cent relative to August 2025.
The Central Bank also reported an improvement in external coverage, with import cover rising to 2.4 months in August 2026 from 2.3 months in July 2026.
Given that the Lilangeni remains pegged one-to-one to the South African Rand, the monthly increase in reserves further supports the country’s external position.
The Bank’s Statistical Release highlights that credit extended to the private sector reached E23.8 billion in July 2026. The figure represents growth of 0.2 per cent month-on-month and 11.4 per cent year-on-year.
The statement notes that the annual increase points to sustained demand for borrowing by both households and businesses.
Growth in private sector credit is typically linked to borrowing for consumption, investment and working capital.
While the Central Bank did not provide a sectoral breakdown in the latest release, the overall upward trend suggests continued lending activity by commercial banks.
Broad money supply, measured as M2, stood at E28.5 billion in July 2026. M2 increased by 3.2 per cent month-on-month and by 12.5 per cent year-on-year.
M2 includes currency in circulation, demand deposits and other liquid deposits held by the public.
The Bank stated that domestic liquid assets held by financial institutions totalled E8.6 billion in July 2026.
This represents a decrease of 1.1 per cent month-on-month. “On a year-on-year basis, domestic liquid assets grew by 4.8 per cent,” noted the statement.
Liquid assets are held by banks to meet short-term obligations and to maintain stability within the financial system. Monthly movements in this category are common and often reflect changes in deposit levels and lending patterns.
The Central Bank maintained its key policy rates in August 2026. The discount rate remained at 6.75 per cent and the prime lending rate was unchanged at 10.25 per cent.
The discount rate is the rate at which the Central Bank lends to commercial banks, while the prime rate serves as a benchmark for commercial banks when pricing loans to their best customers.
The decision to hold rates steady was made amid ongoing monitoring of inflation, regional monetary policy developments and domestic economic conditions.
Overall, the July/August 2026 data show gross official reserves at E10.4 billion with import cover at 2.4 months, credit to the private sector at E23.8 billion, broad money supply at E28.5 billion and domestic liquid assets at E8.6 billion.
The discount rate and prime rate were maintained at 6.75 per cent and 10.25 per cent respectively.
The Central Bank stated that it will continue to monitor domestic and external economic developments and will implement monetary policy measures as necessary to maintain price stability and support financial system stability.
