Broad money (M2) amounted to lei 163,270 billion as of end-September, rising by 3.2 percent in nominal terms (0.4 percent in real terms) month-on-month. Solely net foreign assets were accountable for the monetary expansion.
Net foreign assets increased by 10.5 percent to lei 78,203 billion on the back of the 14 percent climb of foreign-exchange-denominated assets. Net domestic assets shed 2.6 percent to lei 85,067 billion, with domestic credit up 0.8 percent to lei 109,886 billion, whereas the deficit under other assets, net widened by lei 3,136 billion.
Non-government credit edged 4.7 percent higher to reach lei 73,163 billion, prompted by the 7.5 percent growth of lei credit and by the 2.4 percent dip in foreign-exchange credit (in terms of lei, foreign-exchange credit moved up 2.8 percent as a result of leu depreciation). Government credit, net slipped by 6.1 percent to lei 36,723 billion due chiefly to redemption of foreign-exchange government securities (to the amount of USD 95 million).
Narrow money (M1) rose by 4.5 percent to lei 35,686 billion, with currency in circulation swelling 6.6 percent to lei 22,765 billion and demand deposits inching up 1.1 percent to lei 12,920 billion. Currency in circulation increased mostly due to pay boosts granted to the teaching and the research staff, as well as to the increase in pensions. Quasi-money picked up 2.9 percent to lei 127,584 billion. Household savings contracted by 1.8 percent and ran at lei 42,328 billion; behind this development stood higher outlays prompted by the cold season drawing near, on the one hand, and the higher returns on foreign-exchange deposits and Treasury certificates issued by the Ministry of Finance. Thus, the residents' forex deposits (in US dollar terms) advanced by 3.6 percent, whereas foreign-exchange government securities outstanding with the public shot up 25.4 percent to USD 113.2 million. Lei-denominated T-bills sold to individuals expanded 1.8 percent to reach lei 7,382 billion, while the share of household savings in broad money narrowed, from 27.2 percent to 25.9 percent. Corporate deposits in lei climbed 5.8 percent to lei 17,040 billion. When expressed in lei, foreign-exchange deposits of residents added up 5.3 percent to lei 68,216 billion largely as a result of the 5.2 percent depreciation rate of the leu against the US dollar and, to a lesser extent, the effective 0.1 increase in foreign-exchange deposits.