In October 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.increased by MDL 179.4 million (0.5 percent) compared to September 2016 and accounted for MDL 33222.5 million. The increase of the monetary base was determined by the increase of net domestic assets by MDL 560.8 million (17.9 percent), while net foreign assets decreased by MDL 381.4 million (1.1 percent).

Money supply M2 Money supply M2 includes money in circulation (M0), deposits of residents in MDL and money market instruments.increased by

MDL 55.3 million during the reporting period or by 0.1 percent compared to September 2016 and accounted for MDL 45444.0 million.

Money supply M3 Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed in MDL.increased by MDL 211.0 million (0.3 percent) during the reporting period.

The analysis of the passive components of money supply (M3) denotes that its increase was driven by the increase of the total balance of deposits - by MDL 263.5 million during October 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 52.5 million (Table no.1)

Table no.1. Passive components of money supply

The balance of deposits in national currency increased by MDL 107.8 million and accounted for MDL 28599.8 million, representing a share of 54.0 percent of total deposits and the balance of deposits in foreign currency (recalculated in MDL) increased by MDL 155.7 million and accounted for MDL 24342.3 million (with a share of 46.0 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 191.9 million (0.3 percent) and by the increase in net domestic assets by MDL 19.1 million (0.2 percent).

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). decreased by MDL 465.7 million (1.1 percent) in October 2016 due to decrease of credits to economy in national currency by MDL 368.8 million (1.6 percent), and credits in foreign currency (expressed in MDL) by MDL 96.9 million (0.5 percent) (Table no.3).

It should be mentioned that the credits granted to economy in foreign currency, expressed in USD, have decreased by USD 18.4 million during the reporting period.

Table no.3. Structure of credits granted to economy

The negative evolution of the balance of credits granted to economy in national currency was determined by the decrease in the following components: the balance of credits granted to non-financial companies’ sector, which majority ownership is private by MDL 293.6 million (2.2 percent), non-banking financial sector and to other resident sectors (including individuals) - by MDL 17.2 million (2.3 percent) and by MDL 58.0 million (0.8 percent), respectively. However, the balance of credits granted to non-financial companies’ sector, which majority ownership is public maintained practically the same level.

At the same time, the decrease in balance of credits granted to economy in foreign currency (expressed in MDL) was influenced by the decrease in all its components, such as: the balance of credits granted to non-financial companies sector, which majority ownership is public by MDL 36.5 million (4.9 percent), non-financial companies sector, which majority ownership is private by MDL 12.3 million (0.1 percent), non-banking financial sector and to other resident sectors (including individuals) - by MDL 47.2 million (4.7 percent) and by MDL 0.9 million (0.3 percent), respectively.

Statistics