In April 2022, the monetary base1 decreased by MDL 1,949.0 million (3.3%) compared to the previous month and constituted MDL 56,682.1 million, being 1.1% higher than in the similar period of the previous year.
Money supply M02 (currency in circulation) decreased by MDL 147.0 million or by 0.5% compared to March 2022 and constituted MDL 30,119.7 million, by 5.0% lower than in the similar period of the previous year (Chart 1).
Chart 1.
Evolution of money supply in April 2022 compared to the previous month, billion MDL3
Money supply M14 decreased by MDL 295.2 million or by 0.5% compared to March 2022 and constituted MDL 55,849.1 million, being 3.2% lower than in the similar period of the previous year.
Money supply M25 decreased by MDL 217.8 million or by 0.3% compared to March 2022 and constituted MDL 76,391.9 million, by 2.9% lower than in the similar period of the previous year.
Money supply M36 decreased by MDL 1,622.6 million (1.4%) compared to March 2022 and constituted MDL 110,376.4 million, and, compared to April 2021, it remained at the same level.
Chart 2.
Dynamics of bank deposits7, %
* change from the similar period of the previous year.
The balance of deposits in domestic currency decreased by MDL 70.8 million compared to the previous month and constituted MDL 46,272.2 million, representing a share of 57.7% of the total balance of deposits. At the same time, the balance of deposits in foreign currency (recalculated in MDL) decreased by MDL 1,404.9 million to MDL 33,984.6 million, having a share of 42.3% (Chart 2).
Balance of claims on the economy8 constituted MDL 60,370.7 million and decreased by MDL 313.9 million (0.5%) in the reporting month, due to the decrease in claims on economy in foreign currency (expressed in MDL) by MDL 675.0 million (3.7%). At the same time, claims on economy in domestic currency increased by MDL 361.1 million (0.9%) (Chart 3).
It should be noted that claims on the economy in foreign currency, expressed in USD9, decreased by USD 47.9 million (4.8%) during the reference period.
The increase in the balance of claims on the economy in the domestic currency3 was determined by the increase in the balance of claims on other resident sectors (including individuals) by MDL 247.7 million (1.0%), balance of claims on non-financial commercial companies, which majority ownership is private, by MDL 58.0 million (0.4%) , balance of claims on the non-banking financial sector by MDL 38.5 million (3.1%), and the balance of claims on non-financial commercial companies, which majority ownership is public, by MDL 16.9 million (3.4%).
Chart 3.
Dynamics of claims on 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)3 was determined by the decrease in the balance of claims on the non-financial commercial companies, which majority ownership is private, by MDL 601.3 million (3.6%), balance of claims on non-banking financial sector by MDL 81.7 million (7.8%) and the balance of claims on non-financial commercial companies, which majority ownership is public, by MDL 0.8 million (3.7%). At the same time, the balance of claims on other resident sectors (including individuals) increased by MDL 8.8 million (1.7%).
1. Broad monetary base includes money 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 corresponding accounts at the National Bank of Moldova), required foreign currency reserves, “overnight” deposits of banks and sight deposits of other organizations at the National Bank of Moldova.
2. Currency in circulation M0 represents circulating cash issued by the National Bank of Moldova, except for cash in banks and NBM vault.
3. Aggregate data may not correspond exactly to the sum of the components due to mathematical rounding.
4. Money supply M1 includes currency in circulation (M0) and resident’s domestic currency sight deposits.
5. Money supply M2 includes money aggregate (M1), term deposits in Moldovan lei of residents and money market instruments.
6. Money supply M3 includes M2 money supply and residents’ foreign currency deposits denominated in Moldovan lei.
7. Deposits are structured by institutional sectors under the Instruction on completion by licensed banks of the Report on monetary statistics (Official Monitor of the Republic of Moldova No 206-215 of 2 January 2011). Other resident sectors include sectors of the households (individuals, individuals performing an activity) and non-profit institutions serving households.
8. According to the IMF methodology, loans to non-residents, interbank loans, and loans to the Government of the Republic of Moldova are excluded from the total claims on the economy (including data from banks under liquidation).
9. Recalculated using the official exchange rate at the end of the period.
