In January 2023, the currency in circulation (M0)1 amounted to MDL 33,291.5 million, decreasing by MDL -1,114.4 million (3.2%) compared to December 2022 (Chart 1) due to decreasing volume of cumulative releases over the volume of cumulative receipts per banking system2 by MDL -1,114.4 million in January 2023.
Chart 1. Correlation of M0 indicator with volume of cash operations, million MDL
In January 2023, the volume of cash receipts increased by MDL 1,643.6 million (+13.6%) compared to January 2022 and amounted to MDL 13,756.1 million.
The increase in the volume of cash receipts was mainly determined by the increase by MDL 869.3 million (+13.7%) of the receipts from the sale of consumer goods (regardless of the sales channel), which have the largest share (52.4%) in the volume of total receipts (Chart 2).
Significant receipts were from the supply of current accounts and deposit accounts of individuals, which increased by MDL 556.8 million (+42.6%) amounting to MDL 1,863.0 million.
At the same time, the volume of receipts from the sale of foreign currency to individuals decreased by 105.0 million (-16.5%), amounting to MDL 530.3 million (the equivalent of USD 27.8 million2).
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 2023 increased by MDL 1,505.4 million (+13.5%) compared to January 2022 and amounted to MDL 12,641.6 million (Chart 3).
Chart 3. Main purposes of cash releases from licensed banks vaults and their monthly dynamics4
This dynamic was mainly determined by releases from ATM with a significant share of 25.7% of the total volume of cash releases, which increased in January 2023 by MDL 998.6 million (or +44.4%) as compared to January of the previous year as well as the volume of releases from individuals’ accounts5, which amounted to MDL 3,052.5 million that represents 24.1% of the total volume of cash releases registering an increase of MDL 307.9 million (or +11.2%).
At the same time, a significant increase of MDL 649.6 million of the volume of cash releases for the purchase of foreign currency from individuals, which accounted for MDL 3,570.1 million (equivalent of USD6 187.4 million), having a share of 28.2% of the total volume of cash releases was recorded.
At the same time, in January 2023 decreases of cash releases in the form of loans of individuals were recorded with MDL -214.7 million (-60.8%), as well as of releases for work remuneration and social payments with MDL -118.6 million (-11.1%).
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 official average exchange rate calculated for that period;
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.
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