In August 2022, the currency in circulation (M0)¹ amounted to MDL 31,053.5 million, decreasing by MDL 658.0 million (2.1%) compared to December 2021 (Chart 1) due to exceeding of the volume of cumulative receipts over the volume of cumulative releases per banking system² by MDL 657.9 million in the period of January – August 2022.

Chart 1. 
Correlation of M0 indicator with volume of cash operations, million MDL

During January – August 2022, the volume of cash receipts increased by 17.4% compared to the similar period of the previous year and amounted to MDL 113,290.9 million. The increase in the volume of cash receipts was mainly determined by the increase by 10.5% of the receipts from the sale of consumer goods (regardless of the sales channel), which have the largest share (53.3%) in the volume of total receipts (Chart 2). At the same time, the volume of receipts from the sale of foreign currency to individuals increased 2.3 times, amounting to MDL 7,989.7 million (the equivalent of USD 427.9 million³).

This evolution was supported by most sources with a major share in cash receipts.

Chart 2. 
Main sources of cash receipts in licensed banks vaults and their monthly dynamics

At the same time, in August 2022, the volume of cash receipts amounted to MDL 16,228.3 million (+12.2% compared to July 2022 and +17.0% compared to August 2021).

The volume of cash releases from licensed banks vaults in January-August 2022 increased by 13.3% compared to the similar period of the previous year and amounted to MDL 112,633.0 million (Chart 3).

Chart 3. 
Main purposes of cash releases from licensed banks vaults and their monthly dynamics⁴

This increase was mainly determined by the purchase of foreign currency from individuals, which increased by 1.7%, amounting to MDL 29,744.4 million (the equivalent of USD 1,593.1 million⁵), which represents 26.4% of the total volume of cash releases.

At the same time, the volume of releases from individuals’ accounts⁶ increased by MDL 5,468.1 million (24.5%), which amounted to MDL 27,819.7 million. Their share increased by 2.2 p.p. and constituted 24.7% of the total volume of cash releases.

It should be noted that releases from ATMs had a significant share of 21.6% of total releases, increasing in January - August 2022 by MDL 5,626.9 million (30.0%) compared to the same period of the previous year.

In August 2022, the volume of cash releases amounted to MDL 16,258.3 million, which is more than the volume of cash receipts by MDL 30.0 million. Compared to July 2022, cash releases increased by MDL 1,378.1 million or by 9.3%.

• Volume of cash operations and the components of receipts and releases in the banking system of the Republic of Moldova for January-August 2022.xls

• Instruction on the compilation by banks of the Report on the volume of cash operations

1. Currency in circulation (M0) represents circulating cash issued by the National Bank of Moldova, except for cash in banks and NBM vault.

2. Volume of cash operations includes transactions with commemorative coins.

3. Recalculated using the official average exchange rate calculated for that period.

4. Aggregate data may not correspond exactly to the sum of the components due to mathematical rounding.

5. Recalculated using the official average exchange rate.

6. Current, deposit and card accounts are included.