In May 2023, money supply M01 (currency in circulation) amounted to MDL 33,523.0 million, decreasing by MDL 883.0 million (-2.6%) compared to December 2022 (Chart 1) due to decreasing volume of cumulative releases over the volume of cumulative receipts per banking system2 by MDL 882.9 million in January – May 2023.
Chart 1. Correlation of M0 indicator with net releases related to cash operations, MDL million
In January - May 2023, the volume of cash receipts decreased by MDL 1,139.4 million (-1.7%) compared to the same period of the previous year and amounted to MDL 66,496.4 million.
The decrease in the volume of cash receipts was mainly due to the decrease in receipts from the sale of foreign currency to individuals by MDL 2,705.7 million (-46.8%), amounting to MDL 3,080.5 million, which is the equivalent of USD3 166.6 million (Chart 2).
At the same time, receipts from the sale of consumer goods (regardless of the sales channel) increased by MDL 1,306.1 million (+3.7%) amounting to MDL 36,138.1 million. The receipts on current and deposit accounts of individuals also had a significant impact, increasing by MDL 1,242.2 million (+19.9%), accounting for MDL 7,495.2 million.
Chart 2. Main sources of cash receipts in licensed banks vaults and their monthly dynamics
The volume of cash releases from licensed banks vaults in January – May 2023 decreased by MDL 499.1 million (-0.8%) compared to the same period of the previous year and amounted to MDL 65,613.5 million (Chart 3).
Chart 3. Main purposes of cash releases from licensed banks vaults and their monthly dynamics4
This dynamic was mainly due to decreases in releases for other purposes by MDL 2,639.6 million (-24.7%), cash releases in the form of loans to individuals by MDL 938.6 million (-47.2%), releases from the accounts of individuals5 by MDL 373.1 million (-2.2%), as well as releases for work remuneration and social payments by MDL 286.8 (-4.9%).
At the same time, in January - May 2023 ATM withdrawals increased by MDL 3,357.9 million (+22.3%) compared to the same period of the previous year, which amounted to MDL 18,411.1 million, accounting for 28.1% of the total volume of cash withdrawals. There was also a significant increase of MDL 381.0 million (+2.5%) in the volume of cash released for the purchase of foreign currency from individuals, which amounted to MDL 15,715.1 million (equivalent to USD6 850.0 million), accounting for 24.0% of the total volume of cash releases.
1. Currency in circulation (M0) represents circulating cash issued by the National Bank of Moldova, except for cash in banks and NBM vault.
2. Volume of cash operations includes transactions with commemorative coins.
3. Recalculated using the average official exchange rate calculated for the period concerned.
4. Aggregate data may not correspond exactly to the sum of the components due to mathematical rounding.
5. Current, deposit and card accounts are included.
6. Recalculated using the official average exchange rate calculated for that period.
