Swaziland
Notes: 1. Driven by developments and tension in Libya, the discount rate was expected to increase to 6% before the end of 2011, and the prime lending rate expected to follow suit (i.e. adjust upward) and maintain the same magnitude as the discount rate. 2. South African bank notes, but not coins, are legal tender in Swaziland. The monetary arrangement between South Africa and Swaziland, which dates back to when both countries used British Sterling as their currency, was formalized in December 1974 with the signing of the Rand Monetary Area (RMA) Agreement which became the CMA in 1986. 3. Swaziland’s currency is pegged to the South African Rand, subsuming Swaziland’s monetary policy to South Africa. 4. The Lilangeni was expected to depreciate against the US$/Rand in 2011, averaging E7.5.
Notes: 1. Consumer inflation is projected to rise but remain at single digit in the short to medium term. The upward pressure on inflation is expected to result from hikes in domestic fuel and food prices. Due to the increase in consumer price inflation in South Africa, Swaziland’s imported inflation component is expected to come under pressure and consequently be on the high side.
Key Economic Statistics GDP (2011 forecast): US$3.917 billion US$3.917 billion (2010) (source: IMF)
Market Capitalisation - Stock Exchange (approx.): E1.84 billion (March 2011) (source: Swaziland Stock Exchange)
Rate of Inflation: 12.251% (2011 year-end) (source: IMF)
4.469% (2010 average) 7.50% (2009 average) (source: Standard Bank)
Previous
Contents
Next
Guide to Fiscal Information
178