BoM Reports Major Growth in Bank Deposits: Over Rs 900 Billion

The latest monetary data released by the Bank of Mauritius (BoM) revealed a significant leap in financial indicators across the country as of December 31, 2024. The BoM’s Broad Money Liabilities (BML) soared to Rs 974 billion, marking a noteworthy 2.6% rise from November 2024.

This surge is highlighting a positive trend in the availability of money and a robust increase in deposit behaviour.

At the heart of this growth are the bank deposits, reaching an impressive Rs 913 billion, climbing by 2.2% within just one month.

The majority of these deposits are in Mauritian rupees, which grew by 2.5% to Rs 704 billion.

In contrast, foreign currency deposits experienced a more modest rise of 1.1%, totaling Rs 209.2 billion.

The data also revealed that the currency in circulation exceeded Rs 60 billion, a significant increase of 9.7% compared to the previous month.

This surge may well signify a heightened demand for cash as the festive season approaches, encouraging increased spending.

Moreover, net foreign assets from deposit institutions saw a robust increase of 4.6%, reaching Rs 1 trillion.

This growth is largely driven by a 5.6% rise in the net foreign assets of other deposit institutions, while the BoM’s own figures rose by 2.6%.

Turning to credit, net claims on the central government rose by 2.7%, climbing to Rs 219.4 billion.

Notably, the BoM has scaled back its commitments to the government, while other financial institutions have boosted their investments in state-issued bonds.

Additionally, claims on other sectors, including businesses and households, increased by 2.9%, underscoring a rise in funding for the real economy.

Lastly, the value of debt securities issued skyrocketed by an astonishing 56.2%.

Though the total amount remained relatively modest at Rs 699 million, this growth is illustrating a renewed interest in these financial instruments.

Source: l’Express