In November 2016, monetary base The 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.decreased by MDL 40.3 million (0.1 percent) compared to October 2016 and accounted for MDL 33182.2 million. The decrease of the monetary base was determined by the decrease of net domestic assets by MDL 774.3 million (30.0 percent), while net foreign assets increased by MDL 734.0 million (2.1 percent).

Money supply M2 Money supply M2 includes money in circulation (M0), deposits of residents in MDL and money market instruments.decreased during the reporting period by MDL 179.9 million, or by 0.4 percent compared to October 2016 and accounted for MDL 45264.1 million.

Money supply M3 Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed in MDL.decreased by MDL 298.1 million (0.4 percent) during the reporting period.

The analysis of the passive components of money supply (M3) denotes that its decrease during November 2016 was driven by the decrease of Money in circulation M0 Money in circulation M0 represents cash released in circulation by the National Bank of Moldova, except for cash in banks and NBM vault. by MDL 133.6 million and by the decrease of the total balance of deposits by MDL 164.5 million (Table no.1).

Table no.1. Passive components of money supply

The balance of deposits in national currency decreased by MDL 46.3 million and accounted for MDL 28553.5 million, representing a share of 54.1 percent of total deposits and the balance of deposits in foreign currency (recalculated in MDL) decreased by MDL 118.2 million and accounted for MDL 24224.1 million (with a share of 45.9 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 domestic assets of the banking system by MDL 1083.8 million (10.2 percent) and by the increase in net foreign assets by MDL 785.7 million (1.3 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 in November 2016 by MDL 264.0 million (0.7 percent) due to decrease of credits to economy in national currency by MDL 187.5 million (0.9 percent), and credits in foreign currency (expressed in MDL) by MDL 76.5 million (0.4 percent) (Table no.3).

It should be mentioned that the credits granted to economy in foreign currency, expressed in USD, have decreased by USD 14.6 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 national currency was determined by the decrease in the following components: the balance of credits granted to non-financial companies sector, which majority ownership is public by MDL 45.8 million (4.1 percent), credits granted to non-financial companies sector, which majority ownership is private by MDL 216.8 million (1.7 percent). However, the balance of credits granted the non-banking financial sector and to other resident sectors (including individuals) increased by MDL 7.1 million (1.0 percent) and by MDL 68.0 million (1.0 percent), respectively.

At the same time, the decrease in balance of credits granted to economy in foreign currency (expressed in MDL) was influenced by the decrease of the following components, such as: the balance of credits granted to non-financial companies sector, which majority ownership is public by MDL 9.2 million (1.3 percent), non-banking financial sector by MDL 67.0 million (7.0 percent), credits to other resident sectors (including individuals) - by MDL 6.9 million (2.1 percent). However, the balance of credits to non-financial companies’ sector, which majority ownership is private increased by MDL 6.6 million (0.04 percent).

Statistics