Banca Naţională a României

At end-May, broad money (M2) amounted to lei 143,046 billion, up 2.5 percent month on month in nominal terms or 0.7 percent in real terms. The rise in net foreign assets was mainly accountable for the broad money growth.

Net foreign assets rose by 4.2 percent to lei 50,310 billion via the 6.7 percent rise in the foreign exchange component. Net domestic assets increased by 1.6 percent to lei 92,736 billion following a 1.7 percent rise in domestic credit to lei 110,390 billion.

The 3.4 percent rise in credit to non-government, which reached lei 66,678 billion, was chiefly determined by the 5.5 percent growth of credit in foreign exchange, the credit in lei inching up barely 0.4 percent. Even though the volume of government securities outstanding with banks continued to grow, credit to government, net crept down by 0.8 percent (to lei 43,712 billion) due to the increase in the Treasury Account balance from lei 2,175 billion at end-April to lei 4,152 billion at end-May.

M1 increased by 3.2 percent to lei 30.639 billion. Currency in circulation rose by 4.3 percent to lei 20,180 billion. Quasi-money went up by 2.3 percent to lei 112,407 billion. Household savings decreased by 1.0 percent to lei 42,599 billion, against the background of their orientation towards the Treasury certificates issued by the Ministry of Finance, with yields still higher than interest rates on bank deposits. The amount of Treasury certificates outstanding with individuals expanded by 9.2 percent to lei 6,999 billion. Time deposits in lei outstanding with economic agents rose by 1.2 percent to lei 7,582 billion. Residents' forex deposits, expressed in lei, moved 6.7 percent higher to lei 55,015 billion owing to a 3.5 percent increase in forex deposits and a 3.1 percent depreciation of the domestic currency.