At end-October, broad money (M2) came in at ROL 236,890 billion, up 0.7 percent in nominal terms but down by a real 1.7 percent month on month amid opposite developments of its components.
Net foreign assets picked up 3.2 percent to ROL 155,196 billion, due mostly to the 3.8 percent rise under "Convertible currencies" and the virtually unchanged balance under "Gold". The "Convertible currencies" component expanded on the back of proceeds from foreign-exchange-denominated Treasury certificates launched by the Ministry of Public Finance in the domestic market, which added to the National Bank of Romania reserves, and of foreign currency purchases effected by the latter.
Net domestic assets shed 3.6 percent to ROL 81,694 billion. Domestic credit inched down 0.1 percent to ROL 129,198 billion and other assets, net declined by another 6.5 percent.
In October, non-government credit rose 4 percent (taking the ten-month growth to 15.4 percent in real terms) to reach ROL 107,391 billion as a result of increases in both ROL- and foreign-exchange-denominated loans, by 4 percent and 2.2 percent respectively. When expressed in ROL, the forex component moved up 4 percent. Government credit, net contracted by 16.5 percent (down to ROL 21,808 billion) as a result of the following: (i) the rise in the balance of both ROL and foreign-exchange deposits held by the Ministry of Public Finance with the National Bank of Romania, (ii) redemption of some ROL-denominated government securities issued under the bank restructuring programme and (iii) the launching of (ROL- and foreign-exchange-denominated) T-bill issues on the domestic market.
Narrow money (M1) posted a 2 percent setback, touching ROL 50,032 billion, as a result of the 9.4 percent decrease in currency outside banks (amounting to ROL 30,835 billion) and the 4.2 percent upswing in demand deposits (reaching ROL 19,197 billion).
Quasi-money stood 1.5 percent higher at ROL 186,858 billion. Household savings added 2.6 percent to ROL 56,761 billion, holding 24 percent of total broad money whereas the Treasury certificates outstanding with households slipped 0.6 percent to ROL 14,258 billion. Foreign-exchange deposits of households (when expressed in USD) increased by 1.2 percent while the volume of foreign-exchange-denominated government securities outstanding with households (tantamount to USD 121.1 million) edged 19.8 percent higher.
Corporate deposits in ROL rose 2.9 percent to ROL 22,591 billion. Time deposits displayed a 2.2 percent upsurge to ROL 12,872 billion, restricted deposits augmented by 5.7 percent to ROL 4,803 billion, and the certificates of deposit climbed 2.3 percent to ROL 4,916 billion.
Forex deposits of residents (including households) expressed in ROL inched up 0.7 percent to ROL 107,506 billion (when expressed in USD, forex deposits fell 1.1 percent to USD 3,466 million).
As at end-October, non-banks held government securities worth ROL 31,959 billion (up 1.3 percent month on month). Foreign-exchange-denominated government securities outstanding with the non-bank sector were 6.3 percent lower over the month before, reaching the equivalent of USD 176.4 million.