In December 2019, the monetary base1 increased by MDL 541.3 million (1.2%) compared to the previous month and constituted MDL 46,851.0 million, which constitutes 7.6% more than in December 2018.
Chart 1.
Evolution of money supply in December 2019 compared to the previous month
Money supply M02 (currency in circulation) increased by MDL 374.3 million or by 1.7% compared to November 2019 and totalled MDL 22,953.2 million, by 8.9% more than in December 2018 (Chart 1).
Money supply M13 increased by MDL 1,051.0 million or by 2.5% compared to November and totalled MDL 42,629.7 million, by 8.8% more than in the same period of the previous year.
Money supply M24 increased by MDL 1,779.3 million or by 2.9% compared to November and totalled MDL 63,137.0 million, by 8.2% more than in the same period of the previous year.
Money supply M35 increased by MDL 2,046.2 million (2.3%), which constitutes 8.1% more than in December 2018.
Chart 2.
Dynamics of deposits6,%, %
* modification as compared to the similar period of the previous year.
The balance of domestic currency deposits increased by MDL 1,405.0 million and constituted MDL 40,183.8 million, accounting for a share of 60.0% of the total balance of deposits, whereas the balance of foreign currency deposits (recalculated in MDL) increased by MDL 266.9 million and accounted for a total of MDL 26,813.7 million, which constitutes a share of 40.0% (Chart 2).
Balance of claims on the economy7 has increased in the reference month by MDL 128.2 million (0.3%) following the increase of claims on economy for domestic currency by MDL 304.1 million (1.1%), and decrease of the claims for foreign currency - by MDL 175.9 million (1.0%) (Chart 3).
It should be mentioned, that claims on economy for foreign currency, expressed in USD, increased during the reference period by USD 3.2 million (0.3%).
The rise in the balance of claims on economy in domestic currency was determined by the increase of balance of claims in the sector of non-financial commercial companies which majority ownership is public, the balance of claims on the non-banking financial sector and the balance of claims on other resident sectors (including for individuals) by MDL 53.6 million (7.5%), by MDL 68.2 million (10.8%) and by MDL 225.2 million (1.6%), respectively, while the balance of claims in the sector of non-financial commercial companies which majority ownership is private decreased by MDL 42.9 million (0.4%).
Chart 3.
Dynamics of claims on economy
* modification as compared to the similar period of the previous year.
The evolution of the balance of claims on the economy in foreign currency (expressed in MDL) was influenced by the decrease in the balance of claims in the non-financial commercial companies which majority ownership is public by MDL 13.4 million (9.1%), the balance of claims in the non-financial commercial companies which majority ownership is private by MDL 179.7 million (1.2%), and the balance of claims in other resident sectors (including individuals) by MDL 0.6 million (0.2%), whereas the balance of claims in the non-banking financial sector increased by MDL 17.8 million (1.9%).
1. Broad monetary base includes cash money released by the National Bank of Moldova (except for cash in bank’s vault), bank’s reserves in MDL ( held in correspondent accounts at the National Bank of Moldova), foreign currency obligatory reserves, overnight deposits of banks and sight deposits of other organisations at the National Bank of Moldova.
2. Money in circulation M0 represent cash released by the National Bank of Moldova, except for cash in bank’s safes and in the vault of the National Bank of Moldova.
3. Money supply M1 includes money in circulation (M0) and sight deposits of residents in domestic currency.
4. Money supply M2 includes monetary aggregate (M1), term deposits of residents in domestic currency and money market instruments.
5. Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed in Moldovan lei.
6. The deposits are structured on institutional sectors, under the Guidelines on the completion by licensed banks of the Report on monetary statistics (Official Monitor of the Republic of Moldova no.206-215 of 2 December 2011). Other resident sectors include the sectors of households (individuals, individuals conducting business) and non-profit institutions serving households.
7. According to the IMF methodology, the credits of non-residents, interbank credits and the credits issued by the Government of the Republic of Moldova have been excluded from the total claims on economy (including the interest rate calculated for the credits of banks under liquidation).
Statistics
