In July 2017, 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. increased by MDL 41.9 million (0.1 percent) compared to the previous month and accounted for MDL 35933.9 million. The increase of the monetary base was determined by the increase of net foreign assets by MDL 1553.4 million (4.2 percent) while the net domestic assets decreased by MDL 1511.5 million (2.1 times).

Money supply M2 Money supply M2 includes money in circulation (M0), deposits of residents in MDL and money market instruments.increased by MDL 1067.6 million, or by 2.2 percent compared to June 2017 and accounted for MDL 48961.4 million.

Money supply M3 Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed in MDL.increased by MDL 1972.2 million (2.8 percent) during the reporting period.

The analysis of the passive components of Money supply (M3) shows that this increase was driven by the increase of the balance of Money in circulation M0Money in circulation M0 represent cash put into circulation by the National bank of Moldova, except for cash in banks and NBM vault. by MDL 622.7 million and of the total balance of deposits by MDL 1349.5 million in July 2016 (Table no.1).

Table no.1. Passive components of money supply

The balance of deposits in national currency increased by MDL 444.9 million and accounted for MDL 31394.0 million, representing a share of 56.3 percent of total deposits and the balance of deposits in foreign currency (recalculated in MDL) increased by MDL 904.6 million and accounted for MDL 24409.4 million (with a share of 43.7 percent) (Table no.2).

Table no.2. Structure of depositsDeposits 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 increase of money supply M3 in the reporting period was determined by the increase in net foreign assets of the banking system by MDL 2541.1 million (4.1 percent), while the net domestic assets decreased by MDL 569.0 million (6.2 percent).

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). increased by MDL 25.8 million (0.1 percent) in July 2017, due to the increase of claims on the economy in foreign currency (expressed in MDL) by MDL 126.4 million (0.8 percent), while claims in national currency decreased by MDL 100.6 million (0.5 percent) (Table no.3).

It should be mentioned that the claims on the economy in foreign currency, expressed in USD, have increased during the reporting period by USD 9.9 million.

Table no.3. Structure of credits granted to economy

The positive evolution of the balance of claims on the economy in foreign currency (expressed in MDL) was influenced by the increase of the following components: balance of claims on the non-financial companies’ sector, which majority ownership is private - by MDL 173.3 million (1.2 percent) and non-banking financial sector - by MDL 9.7 million (1.2 percent), respectively. At the same time, the balance of claims on the non-financial companies’ sector, which majority ownership is public and that of other resident sectors (including individuals) - decreased by MDL 17.7 million (2.9 percent) and by MDL 38.8 million (13.5 percent), respectively.

At the same time, the decrease in balance of claims on the economy in national currency was determined by the decrease of the following components: balance of claims on the non-financial companies’ sector, which majority ownership is private - by MDL 258.8 million (2.1 percent) and non-banking financial sector - by MDL 17.5 million (2.4 percent), respectively. At the same time, the balance of claims on the non-financial companies’ sector, which majority ownership is public and that of other resident sectors (including individuals) - increased by MDL 49.3 million (4.9 percent) and by MDL 126.4 million (1.6 percent), respectively.

Statistics