In February 2015, 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 517.0 million (2.0 percent) compared to January 2015 and accounted for MDL 25873.4 million. The increase of the monetary base was determined by the increase of net domestic assets by MDL 2091.3 million (70.6 percent). At the same time, net foreign assets decreased by MDL 1574.3 million (5.6 percent). Money supply M2 Money supply M2 includes monetary aggregate (M0), deposits in MDL and money market instruments. decreased by MDL 2442.3 million during the reporting period, or by 5.9 percent compared to January 2015 and accounted for MDL 39171.2 million. At the same time, Money supply M3Money supply M3 includes broad money M2 and deposits in foreign currency of residents expressed in MDL. decreased by 929.6 MDL million (1.4 percent) in February 2015.
The analysis of the passive components of money supply (M3) denotes the fact that this decrease was driven by the decrease of the balance of Money in circulation M0Money in circulation M0 represents cash in circulation put by the National Bank of Moldova, except for cash in banks and NBM vault by MDL 825.2 million and the balance of deposits by MDL 104.4 million in February 2015 (Table no.1).   

Table no.1 Passive components of money supply  

The balance of deposits in national currency was MDL 23360.4 million, which share equalled to 46.0 percent of total deposits, decreasing by MDL 1617.1 million, while the deposits in foreign currency (recalculated in MDL) increased by MDL 1512.4 million, up to the level of MDL 27415.4 million (with a share of 54.0 percent) (Table no.2).

Table no.2 Deposits structureDeposits 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 during the reporting period was determined by the decrease in net domestic assets of the banking system by MDL 1448.9 million (7.0 percent), while the net foreign assets of the banking system increased by MDL 519.4 million (1.1 percent). Domestic credit of the banking system increased by MDL 960.4 million, up to MDL 44676.4 million, due to the increase in the balance of credits granted to economy and the balance of credits granted to the Government by MDL 744.2 million and by MDL 216.2 million, respectively.   

The 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). increased by 1.7 percent in February 2015 at the expense of the increase of credits granted to economy in national currency by MDL 334.5 million (1.3 percent) and the credits in foreign currency (expressed in MDL) by MDL 409.8 million (2.4 percent) (Table no.3). At the same time, the credits to economy in foreign currency, expressed in USD, have decreased by USD 21.3 million, highlighting that their increase, expressed in MDL, was due to the depreciation of the national currency during the reporting period.

Table no.3 Structure of credits granted to economy 

Positive evolution of the balance of credits granted to economy in national currency was determined by the increase of all its components, such as: the balance of credits granted to non-financial companies sector, which majority ownership is private – by MDL 237.1 million (1.4 percent), the balance of credits granted to non-financial companies sector, which majority ownership is public – by MDL 45.9 million (5.7 percent), that of non-banking financial sector by MDL 11.3 million (1.8 percent) and the balance of credits granted to other resident sectors (including individuals) by MDL 40.2 million (0.6 percent). 

Statistica