Cabo Verde's money supply — encompassing currency in circulation and bank deposits — expanded 12.5% in June compared with the same month of 2025, driven primarily by a surge in external liquidity, the island nation's central bank announced on Wednesday.
According to a statement from the Banco de Cabo Verde (BCV), cited by Lusa, net external assets rose 27.3%, largely reflecting a 33.9% increase in the BCV's own net foreign assets.
Net international reserves reached €1.1 billion as of 30 June, an increase of €297.8 million compared with a year earlier.
Domestic credit expanded 0.6%, with credit to the broader economy growing 6.1%, offsetting a 30.3% contraction in net credit to the Public Administrative Sector (SPA).
Credit to the private sector rose 6.4%, while lending to non-financial state-owned enterprises declined 4.1%.
The reduction in net credit to the SPA was driven primarily by a 19% increase in deposits held by that sector with commercial banks, alongside a 4.4% fall in credit to central government, which in turn was associated with an 86.7% drop in Treasury bill issuance.
The overall expansion in money supply also reflected an 18% increase in currency in circulation and demand deposits, as well as 7.1% growth in quasi-money, a category that includes mainly term deposits and savings accounts.
On bank lending rates, the average interest rate — including overdrafts — fell to 8.43% in June, down 75 basis points from a year earlier, while the average deposit rate edged up 7 basis points to 1.64%.
The monetary base expanded 27.7% year-on-year, underpinned by a 30.4% increase in commercial bank deposits held at the BCV and 15.8% growth in monetary issuance.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=529887
