In January 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 976.3 million (3.3 percent) compared to December 2015 and accounted for MDL 28712.9 million. The decrease of the monetary base was determined by the decrease of net domestic assets by MDL 2009.5 million (2.1 times). At the same time, net foreign assets increased by MDL 1033.2 million (3.7 percent).

Money supply M2 Money supply M2 includes money in circulation (M0), deposits of residents in MDL and money market instruments.decreased by MDL 440.7 million during the reporting period or by 1.1 percent compared to December 2015 and accounted for MDL 38820.1 million.

Money supply M3 Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed in MDL.increased by MDL 632.9 million (1.0 percent) in January 2016.

The analysis of the passive components of Money supply (M3) denotes the fact that this increase was driven by the increase of the total balance of deposits by MDL 1082.1 million in January 2016, while the balance 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. decreased by MDL 449.2 million (Table no.1).

Table no.1. Passive components of money supply

The balance of deposits in national currency increased by MDL 8.5 million and accounted for MDL 23759.9 million, representing a share of 47.9 percent of total deposits, while the balance of deposits in foreign currency (recalculated in MDL) increased by MDL 1073.6 million and accounted for MDL 25819.0 million, with a share of 52.1 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 increase of money supply M3 in the reporting period was determined by the increase in net foreign assets of the banking system by MDL 2292.9 million (4.7 percent), while the net domestic assets of the banking system decreased by MDL 1660.0 million (10.9 percent).

Domestic credit of the banking system increased by MDL 167.1 million, up to MDL 42583.8 million, due to the increase in the balance of credits granted to economy by MDL 201.1 million. At the same time, the balance of credits granted to the Government decreased by MDL 34.0 million.

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 in January 2016 by 0.5 percent at the expense of the increase of credits to economy in foreign currency (expressed in MDL) by MDL 722.5 million (3.9 percent), while the credits in national currency decreased by MDL 521.4 million (2.2 percent) (Table no.3). At the same time, the credits to economy in foreign currency, expressed in USD, have decreased by USD 8.1 million during the reporting period.

Table no.3. Structure of credits granted to economy

Negative evolution of the balance of credits granted to economy in national currency was determined by the decrease of credits granted to non-financial companies sector, which majority ownership is private and other resident sectors (including individuals) by MDL 459.9 million (3.0 percent) and MDL 97.4 million (1.4 percent), while the balance of credits to non-financial companies sector, which majority ownership is public and non-banking financial sector increased by MDL 16.2 million (1.7 percent) and by MDL 19.7 million (2.8 percent) respectively.

Statistics