In March 2021, the monetary base1 decreased by MDL 1,067.7 million (1.9%) compared to the previous month and amounted MDL 54,976.0 million, being 14.8 percent higher than in March 2020.
Monetary supply M02 (Currency in circulation) decreased by MDL 26.5 million or by 0.1 percent compared to February 2021 and amounted MDL 30,426.1 million, by 29.7 percent more than in March 2020 (chart 1).
Chart 1.
The evolution of the money supply in March 2021 compared to the previous month
Monetary supply M13 decreased by MDL 118.3 million or by 0.2 % compared to February 2021, being by 33.1% higher than in the similar period of the previous year.
Monetary supply M24 decreased by MDL 61.8 million or by 0.1 percent compared to February 2021 and amounted to MDL 76,528.1 million, by 23.5% more than in the similar period of the previous year.
Monetary supply M35 decreased by MDL 579.2 million (0.5%), being 16.7 percent higher than in March 2020.
Chart 2.
Dynamics of bank deposits6, %
* change from the similar period of the previous year.
The balance of domestic currency deposits decreased by MDL 35.3 million compared to the previous month and totalled MDL 46,102.0 million, representing a share of 59.8% of the total deposits, the balance of foreign currency deposits (recalculated in lei) decreased by MDL 517.4 million, up to the level of MDL 31,016.6 million, having a share of 40.2% (chart 2).
Balance of claims on the economy7 amounted to MDL 49,707.1 million and increased in the reporting month by MDL 872.7 million (1.8%), as a result of the increase of claims on economy in domestic currency by MDL 889.5 million (2.8%), while those in foreign currency (expressed in MDL) decreased by MDL 16.7 million (0.1%) (chart 3).
It should be noted, that claims on economy in foreign currency, expressed in USD, decreased during the reference period by USD 31.6 million (3.17%).
The increase in the balance of claims on economy in domestic currency was determined by the increase of claims on other resident sectors (including individuals) by MDL 565.2 million (3.3%), of the balance of claims on the sector of non-financial commercial companies, which majority ownership is private by MDL 271.6 million (2.1%), of the balance of claims on the non-banking financial sector by MDL 81.7 million (15.8%), while the balance of claims on the sector of non-financial commercial companies, which majority ownership is public decreased by MDL 29.0 million (4.2%).
Chart 3.
Dynamics of claims on the economy
* change from the similar period of the previous year.
The decrease in the balance of claims on the economy in foreign currency (expressed in MDL) was determined by the decrease in the balance of claims on other resident sectors (including individuals) by MDL 31.6 million (5.9%) and in the balance of claims on the non-financial companies which majority ownership is public by MDL 3.6 million (5.7%). At the same time, the increase in the balance of claims on the non-banking financial sector by MDL 9.4 million (1.2%) and in the balance of claims on the non-financial companies which majority ownership is private by MDL 9.0 million (0.1%) increased above-mentioned indicator.
1. The broad monetary base includes currency put into circulation by the National Bank of Moldova (except cash in the vault of the National Bank of Moldova), bank reserves in lei (held in the corresponding accounts with the National Bank of Moldova), required foreign currency reserves, deposits “Overnight” of banks and sight deposits of other organizations at the National Bank of Moldova.
2. Currency in circulation M0 represents cash issued by the National Bank of Moldova, except for cash in banksand NBM vault.
3. M1 money supply includes currency in circulation (M0) and resident’s domestic currency sight deposits.
4. Money supply M2 includes money aggregate (M1), term deposits in Moldovan lei of residents and money market instruments.
5. M3 money supply includes M2 money supply and foreign currency deposits denominated in Moldovan lei.
6. Deposits are structured by institutional sectors, in accordance with the Instruction on how to complete by licensed banks the Report on monetary statistics (Official Monitor of the Republic of Moldova no. 206-215 of January 2, 2011). Other resident sectors include the sectors of the household (individuals, working individuals) and non-profit institutions serving households.
7. According to the IMF methodology, from the total claims on the economy (including the data from banks in the process of liquidation) are excluded loans to non-residents, interbank loans and loans to the Government of the Republic of Moldova.
