In November 2014, monetary baseThe monetary base includes money in circulation  (outside banking system), banking reserves (banks' reserves in MDL on correspondent accounts maintained at the National Bank of Moldova and cash in banks), deposits at sight of other organizations with the National Bank of Moldova,  “overnight” deposits of banks and required reserves in foreign currency. decreased by MDL 82.7 million (0.3 percent) compared to October 2014 and accounted for MDL 26109.1 million. The decrease of the monetary base was determined by the decrease of net foreign assets by MDL 3704.5 million (11.2 percent). At the same time, net domestic assets increased by MDL 3621.8 million (52.2 percent).Money supply M2Money supply M2 includes monetary aggregate (M0), deposits in MDL and money market instruments. decreased by MDL 1154.9 million during the reporting period or by 2.6 percent compared to October 2014 and accounted for MDL 43885.6 million. Money supply M3Money supply M3 includes broad money M2 and deposits in foreign currency of residents expressed in MDL. decreased by MDL 378.2 million (0.6 percent) in November 2014.
The analysis of the passive components of money supply (M3) denotes the fact that this decrease was driven by the decrease of the balance of Money in circulation M0 Money in circulation M0 represents cash in circulation put by the National Bank of Moldova, except for cash in banks and NBM vault by MDL 148.5 million and the balance of deposits by MDL 229.7 million in November (Table no.1).   

Table no.1 Passive components of money supply  

The balance of deposits in national currency was MDL 26429.6 million, which share equalled to 55.0 percent of total deposits, decreasing by MDL 1006.4 million, while the deposits in foreign currency (recalculated in MDL) increased by MDL 776.7 million, up to the level of MDL 21619.0 million (with a share of 45.0 percent) (Table no.2).

Table no.2 Deposits structureDeposits structure is classified by institutional sectors, according to the Instruction on filling out by the licensed banks of the Report on monetary statistics (Official Monitor of the Republic of Moldova no.206-215 of December 2, 2011).

The decrease of money supply M3 in the reporting period was determined by the decrease in net  domestic assets of the banking system by MDL 7746.2 million (25.1 percent), while the net foreign assets of the banking system increased by MDL 7368.0 million (21.0 percent). Domestic credit of the banking system decreased by MDL 6965.2 million, up to MDL 41842.9 million, due to the decrease in the balance of credits granted to economy by MDL 7365.3 million. At the same time, the balance of credits granted to the Government increased by MDL 400.1 million. 

The balance of credits in economyAccording to the IMF methodology, the interbank credits and the credits granted to the Government are excluded from the total credits in the economy (including the interest calculated for credits and for credits of banks - in liquidation process). decreased by 1.6 percent in November 2014 at the expense of the decrease of both its components: credits to economy in national currency by MDL 3946.7 million (13.6 percent), and credits in foreign currency (expressed in MDL) by MDL 3418.6 million (17.4 percent) (Table no.3). At the same time, the credits to economy in foreign currency, expressed in USD, have increased by USD 247.4 million. 

Table no.3 Structure of credits granted to economy 

Negative evolution of the balance of credits granted to economy in national currency was determined by the decrease of credits granted to non-financial companies sector, which majority ownership is private by MDL 3988.1 million (19.5 percent), while the balance of credits to non-banking financial sector and other resident sectors (including individuals) by MDL 19.3 million (3.6 percent) and by MDL 25.7 million (0.4 percent), respectively. The balance of credits granted to non-financial companies sector, which majority ownership is public increased by MDL 86.4 million (10.7 percent).

At the same time, the decrease in the balance of credits granted to economy in foreign currency (expressed in MDL) was influenced by the decrease in the balance of credits granted to all its sectors: balance of credits granted to non-financial companies sector, which majority ownership is public by MDL 13.3 million (1.8 percent), non-banking financial sector by MDL 15.0 million (1.9 percent), non-financial companies sector, which majority ownership is private by MDL 3368.2 million (18.9 percent), and that of credits granted to other resident sectors (including individuals) by MDL 22.1 million (8.0 percent), respectively.

Statistics