In October 2020, the monetary base1 increased by MDL 2,439.3 million (4.9%) compared to the previous month and constituted MDL 52,097.1 million, being 14.3 % higher than in October 2019.
Chart 1.
The evolution of the money supply in October 2020 compared to the previous month
The monetary supply M02 (Money in circulation) increased by MDL 1,233.3 million or by 4.7 % compared to September 2020 and amounted to MDL 27,662.2 million, that is by 21.6 % more than in October 2019 (chart 1).
The monetary supply M13 increased by MDL 2,237.7 million or by 4.6% compared to September 2020, being 22.0% higher than the similar period of the previous year.
The monetary supply M24 increased by MDL 2,387.0 million or by 3.5 % compared to September 2020 and totalled MDL 70,986.2 million, by 16.2% more than the similar period of the previous year.
The monetary supply M35 increased by MDL 1,965.9 million (2.0%), being by 14.5% more than in October 2019.
Chart 2.
Dynamics of deposits6, %
* modification as compared to the similar period of the previous year.
The balance of domestic currency deposits increased by MDL 1,153.7 million compared to the previous month and totalled MDL 43,324.0 million, representing a share of 59.1 % of total deposits and the balance of foreign currency deposits (recalculated in MDL) decreased by MDL 421.1 million, to the level of MDL 30,022.2 million, having a share of 40.9 % (chart 2).
Balance of claims on the economy7 constituted MDL 47,210.6 million and increased in the reporting month by MDL 410.2 million (0.9 %), following the increase of claims on economy in domestic currency by MDL 189.9 million (0.6 %) and those in foreign currency (expressed in MDL) by MDL 220.3 million (1.3 %) (chart 3).
It should be noted, that claims on economy in foreign currency, expressed in USD, increased during the reference period by USD 8.3 million (0.8 %).
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 197.3 million (1.2 %), of the balance of claims on the sector of non-financial commercial companies, which majority ownership is private, by MDL 110.9 million (0.9 %), while the decrease in the balance of claims on the non-banking financial sector by MDL 90.4 million (17.9%) and the decrease in the balance of claims on the sector of non-financial commercial companies, which majority ownership is public by MDL 27.9 million (3.6%), influenced negatively over it.
Chart 3.
Dynamics of demand for the economy
* modification as compared to the similar period of the previous year.
The increase in the balance of claims on the economy in foreign currency (expressed in MDL) was determined by the increase in the balance of claims on the non-financial commercial companies, which majority ownership is private, by MDL 244.3 million (1.6 %) and by the balance of claims on other resident sectors (including individuals) by MDL 2.0 million (0.4 %). Simultaniously, the decrease in the balance of claims on the non-banking financial sector by 24.3 MDL million (2.9 %), and in the balance of claims on the non-financial commercial companies, which majority ownership is public, by MDL 1.8 million (2.0 %) influenced negatively over above mentioned indicator.
1. Broad monetary base includes money put into circulation by the National Bank of Moldova (except for cash in the house 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 demand deposits of other organizations at the National Bank of Moldova.
2. Money in circulation M0 represent cash released by the National Bank of Moldova, except for cash in bank’s safes and in the vault of the National Bank of Moldova.
3. Money supply M1 includes money in circulation (M0) and sight deposits of residents in domestic currency.
4. Money supply M2 includes money aggregate (M1), term deposits in Moldovan lei of residents and money market instruments.
5. Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed 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 December 2, 2011). Other resident sectors include sectors of the household (individuals, working individuals) and non-profit institutions serving households.
7. According to the IMF methodology, from the total demands on the economy (including interest calculated on loans from banks in liquidation) are excluded loans from non-residents, interbank and loans to the Government of the Republic of Moldova.
