At end-December, broad money (M2) came in at ROL 185,060 billion, up 12.5 percent month-on-month in nominal terms and 9.8 percent in real terms. The growth of both net domestic assets and net foreign assets drove broad money higher.
Net domestic assets rose 13.2 percent month-on-month to ROL 92,148 billion, with domestic credit expanding by 10.5 percent to ROL 108,942 billion and the deficit under other net assets narrowing by ROL 432 billion. The non-government credit edged up 6 percent to ROL 75,007 billion solely on the back of an 8.2 percent increase in foreign exchange credit (in ROL terms, the foreign-exchange credit moved 10.6 percent ahead). Non-government credit in lei was little changed, inching down 0.1 percent. Therefore, the weight of foreign-exchange credit in total bank credit widened from 57 percent at end-November to 59.5 percent at end-December. Credit to government, net, went up by 22 percent to ROL 33,934 billion due solely to the decline in call accounts in both local and foreign currency of the General Account of Treasury.
Net foreign assets grew by 11.7 percent to ROL 92,912 billion owing to the 33.4 percent rise under 'Gold' (following end-of-year revaluation of the gold stock) and the 5.8 percent advance under 'Foreign Exchange' (in ROL terms).
Narrow money (M1) waxed by 25.1 percent to ROL 46.331 billion as a result of the 44.8 percent increase in demand deposits to ROL 20,598 billion and of the 12.9 percent upswing in currency outside banks to ROL 25,742 billion. The growth of demand deposits stemmed from the upturn in sales during the Christmas holiday shopping season, while that of currency outside banks was driven by payment of the "13th month" salary and end-of-year bonuses.
Quasi-money moved 8.8 percent ahead to ROL 138,729 billion. Household savings climbed 9.1 percent to ROL 44,549 billion due mainly to full-year interest payment by the Savings Bank in December. Apart from this development, household savings would have risen by a meagre 2.3 percent, lagging behind the growth of Treasury certificates (up 4.4 percent in value to ROL 8,452 billion). Household forex deposits, expressed in US dollars, swelled by 2.8 percent, while the volume of foreign-exchange-denominated Treasury certificates outstanding with the public shed 3.3 percent to the equivalent of USD 110 million, as some issues reached maturity.
Corporate deposits in lei notched up an 18.2 percent gain to reach ROL 19,324 billion. Residents' forex deposits, expressed in ROL, grew by 6.4 percent to ROL 74,856 billion due mainly to larger deposits of privately owned enterprises, rising 5.6 percent.
During January to December 2000, broad money picked up 38 percent in nominal terms, its growth rate falling behind the inflation rate (of 40.7 percent). Behind this development stood the different behaviour of its counterpart's constituents. Net foreign assets displayed a 124.5 percent upsurge driven by the 190.8 percent climb under 'Hard currency' and the 35.3 percent rise under 'Gold'. Net domestic assets came off 0.6 percent, in spite of a 7.5 percent advance in domestic credit, following the ROL 8, 194 billion widening of the deficit under 'Other assets, net'.
Non-government credit edged 30 percent higher January through December 2000, as a result of the 24.4 percent increase in credit in lei and the 5.7 percent uptick in foreign-exchange credit (when expressed in lei, the latter surged 34 percent). Credit to government, net, dropped by 22.2 percent mainly due to redemption of some T-bill issues.
Narrow money (M1) posted a 56.2 percent pickup January through December 2000 on account of a 67.4 percent surge in demand deposits and a 48.2 percent rise in currency outside banks. Quasi-money augmented by 32.8 percent propelled by increases in household savings as well as in residents' deposits in lei and foreign exchange, up 13.5 percent, 31.2 percent, and 48.3 percent (in ROL terms) respectively.