At end-September broad money (M2) stood at ROL 235,145 billion, up 3.8 percent in nominal terms and 1.9 percent in real terms month on month. Broad money increased on the back of the rise both in net foreign assets and in net domestic assets.
Net foreign assets grew 3.1 percent to ROL 150.393 billion, due to the 3.7 percent expansion under "Convertible currencies" component; and broadly unchanged "Gold component". The "Convertible currencies" component went up mainly on the back of corporate and household foreign exchange deposits with banks.
Net domestic assets added 5.1 percent to ROL 84,752 billion; domestic credit edged up 5.3 percent to ROL 129.349 billion, and the negative balance of other domestic assets, net widened by 5.8 percent.
In September, non-government credit picked up 3.9 percent (13.6 percent in real terms in the first nine months of the year) to ROL 103,230 billion on the back of the 6.8 percent growth in credits in ROL and the 2.0 percent increase in credits in foreign currencies. When expressed in ROL, the foreign-currency denominated component inched up 0.6 percent. Government credit, net stepped up 11.3 percent to ROL 26.119 billion, mainly as a result of the drop in foreign-exchange liquidities held by the Ministry of Public Finance with the National Bank of Romania.
Narrow money (M1) rose by 6.0 percent to ROL 51,073 billion as a result of the 9.4 percent increase in currency outside banks, amounting to ROL 32,645 billion, and of the 0.5 percent rise in demand deposits to ROL 18,427 billion. Cash in circulation expanded mainly on the back of: (i) the increase in wage of public sector (third stage) in line with inflation; (ii) indexation of pensions (third stage); and (iii) decrease in cash collections due to fewer working days at end-September1).
Quasi-money went up 3.2 percent to ROL 184,072 billion. Household savings added 2.4 percent to ROL 55.327 billion accounting for 23.5 percent of the broad money. ROL-denominated government securities outstanding with households dropped by 2.5 percent to ROL 14,337 billion. Households' foreign-exchange bank deposits (expressed in USD) picked up 3.2 percent while foreign-exchange denominated government securities outstanding with households (equivalent to USD 101,1 million) fell by 7.2 percent.
Corporate deposits in ROL advanced by 1.2 percent to ROL 21,947 billion, of which time deposits inched up 0.4 percent to ROL 12,596 billion, restricted deposits stepped up 2.6 percent to ROL 4,545 billion, and certificates of deposit put on 1.9 percent to ROL 4,807 billion.
Residents' forex deposits (including households) expressed in ROL increased by 4.0 percent to ROL 106,797 billion (equaling a 2.6 percent growth in USD terms, up to USD 3,506 million).
At end-September, non-banks held ROL-denominated government securities worth ROL 31,563 billion (down 2.4 percent against August). Foreign-exchange-denominated government securities outstanding with the non-bank sector moved down 4.8 percent month on month to reach the equivalent of USD 188,3 million.
1) An important amount of cash is sterilized in the last four working days of each month.