Banca Naţională a României

At end-April, broad money (M2) amounted to lei 139,518 billion, up 2.5 percent month on month in nominal terms, but down by a real 2.2 percent. Solely the rise in net foreign assets was accountable for the broad money growth.

Net foreign assets climbed 7.8 percent to lei 48,261 billion via the 12.7 percent rise in foreign exchange component. Net domestic assets remained relatively unchanged at lei 91,257 billion, against the background of a 2.7 percent rise in domestic credit, which equalled lei 108,544 billion, and a 20.4 percent decline in other net domestic assets.

The 3.1 percent rise in non-government credit, which reached lei 64,490 billion, was determined by the 2.5 percent growth of lei credit and the 3.5 percent increase in credit in foreign exchange. Credit to government, net rose 2.1 percent to lei 44,054 billion, due primarily to new issues of Treasury certificates launched by the Ministry of Finance.

M1 increased by 14.2 percent to lei 29.692 billion as a result of the 20.5 percent increase in currency in circulation (to lei 19,357 billion). This development was attributed to payments made by the Bank Deposit Guarantee Fund, the hike in the wage bill of the teaching staff and other wage bills for the government budget, as well as seasonal factors, with payment of dividends for 1999 leading the way. Quasi-money dipped 0.3 percent to lei 109,827 billion. Household savings inched up barely 0.1 percent to lei 43,039 billion amid falling interest rates on the banks’ time deposits, while yields on Treasury certificates issued by the Ministry of Finance were still higher than interest rates on bank deposits. The amount of Notes outstanding with the public expanded by 9.9 percent. Corporate lei deposits crept down by 4,3 percent to lei 15,220 billion. Residents’ forex deposits, expressed in lei, moved 0.7 percent higher to lei 51,567 billion owing to leu depreciation.