In May 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 760.4 million (2.3 percent) compared to the previous month and accounted for MDL 34466.5 million. The increase of the monetary base was determined by the increase of net domestic assets by MDL 2027.4 million (49.1 percent), while net foreign assets decreased by MDL 1267.0 million (3.4 percent).

Money supply M2 Money supply M2 includes money in circulation (M0), deposits of residents in MDL and money market instruments.increasedby MDL 102.8 million during the reporting period or by 0.2 percent compared to April 2017 and accounted for MDL 47111.3 million..

Money supply M3 Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed in MDL.increased by MDL 597.7 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 of the balanceof 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 173.7 million and of the total balance of deposits by MDL 424.0 million in May 2017 (Table no.1).

Table no.1. Passive components of money supply

The balance of deposits in national currency increased by MDL 276.5 million and accounted for MDL 30406.5 million, representing a share of 56.5 percent of total deposits, while the balance of deposits in foreign currency (recalculated in MDL) decreased by MDL 700.5 million and accounted for MDL 23395.1 million (with a share of 43.5 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 1391.4 million (2.2 percent), while the net domestic assets of the banking system increased by MDL 793.6 million (9.4 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 702.0 million (1.8 percent) in May 2017, due to the decrease of credits to economy in foreign currency (expressed in MDL) by MDL 757.3 million (4.5 percent), while credits in national currency increased by MDL 55.3 million (0.3 percent) (Table no.3).

It should be mentioned that the credits granted to economy in foreign currency, expressed in USD, have increased during the reporting period by USD 8.4 million.

Table no.3. Structure of credits granted to economy

The positive evolution of 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 public by MDL 46.4 million (4.9 percent), non-banking financial sector - by MDL 6.2 million (0.8 percent) and that of credits granted to other resident sectors (including individuals) - by MDL 154.3 percent (2.1 percent), respectively. At the same time, the balance of credits granted to non-financial companies' sector, which majority ownership is private decreased by MDL 151.6 million (1.2 percent).

Statistics