In March 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 453.0 million (1.4 percent) compared to February 2017 and accounted for MDL 33604.9 million. The increase of the monetary base was determined by the increase of net domestic assets by MDL 983.5 million (18.2 percent), while net foreign assets decreased by MDL 530.5 million (1.4 percent).

Money supply M2 Money supply M2 includes money in circulation (M0), deposits of residents in MDL and money market instruments.decreased by MDL 100.5 million during the reporting period or by 0.2 percent compared to February 2017 and accounted for MDL 46370.4 million.

Money supply M3 Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed in MDL.decreased by MDL 592.8 million (0.8 percent) during the reporting period.

The analysis of the passive components of Money supply (M3) shows that this decrease was driven by the decrease ofthe 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 12.5 million and of the total balance of deposits by MDL 580.3 million in December 2016 (Table no.1).creased by MDL 111.7 million in February 2017 (Table no.1).

Table no.1. Passive components of money supply

The balance of deposits in national currency decreased by MDL 88.0 million and accounted for MDL 29982.4 million, representing a share of 55.7 percent of total deposits, while the balance of deposits in foreign currency (recalculated in MDL) decreased by MDL 492.3 million and accounted for MDL 23827.5 million (with a share of 44.3 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 decrease of money supply M3 in the reporting period was determined by the decrease in net foreign assets of the banking system by MDL 912.3 million (1.5 percent), while the net domestic assets of the banking system increased by MDL 319.5 million (4.0 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). decreased by MDL 140.5 million (0.4 percent) in March 2017, due to the decrease of credits to economy in foreign currency by MDL 496.8 million (2.8 percent), while credits in national currency increased by MDL 356.3 million (1.7 percent) (Table no.3).

It should be mentioned that the credits granted to economy in foreign currency, expressed in USD, have decreased by USD 1.9 million. during the reporting period.

Table no.3. Structure of credits granted to economy

The negative evolution of the balance of credits granted to economy in foreign currency (expressed in MDL) was determined by the decrease in the following components: balance of credits granted to non-financial companies’ sector, which majority ownership is public by MDL 7.6 million (1.2 percent), non-financial companies sector, which majority ownership is private and non-banking financial sector by MDL 475.4 million (3.0 percent) and MDL 30.9 million (3.6 percent), respectively. At the same time, the balance of credits granted to other resident sectors (including individuals) increased by MDL 17.1 million (5.4 percent).

At the same time, the increase in the balance of credits granted to economy in national currency was influenced by the increase of the following components: the balance of credits granted to non-financial companies’ sector, which majority ownership is private by MDL 211.7 million (1.7 percent), non-banking financial sector MDL 39.3 million (5.5 percent) and that of credits granted to other resident sectors (including individuals) by MDL 144.1 percent (2.0 percent), respectively. However, the balance of credits granted to non-financial companies’ sector, which majority ownership is public decreased by MDL 38.8 million (4.1 percent).

Statistics