Money supply growth rose in February

The Bank of Tanzania (BoT) said money supply growth in February 2020 was robust, re- sponding to accommodative monetary policy and cred- it growth to private sector.

BoT’s latest report for March 2020, shows that ex- tended broad money supply (M3) grew by 9.9 per cent in the year ending February 2020 compared with 4.0 per cent in the corresponding period in 2019.

Likewise, broad money supply (M2), which excludes foreign currency deposits in

the measurement of money supply, grew by 10.3 per cent compared with 6.0 per cent in February 2019.

The central bank says the high growth was driven by improvement in the cur- rent account balance of the balance of payments, owing to cumulative impact of the

increase in export proceeds from gold, manufactured goods, and tourism related activities.

Domestic credit grew
by 5.8 per cent in the year ending February 2020, compared with 8.3 per cent in the corresponding period in 2019.