At end-December, broad money (M2) came in at ROL 270,512 billion, up 10.5 percent in nominal terms (8.1 percent in real terms) month on month. The monetary expansion resulted from the increase in both net foreign assets and net domestic assets.
Net foreign assets increased 4.6 percent to ROL 168,511 billion, due to the 24.1 percent rise under "Gold" and the 1.2 percent growth under Convertible currencies". The "Gold" component expanded on the back of the yearly revaluation of the gold stock of the National Bank of Romania carried out in December.
Net domestic assets leapt 21.7 percent to ROL 102 billion. Domestic credit added 8.9 percent to ROL 143,245 billion and the negative balance under other assets, net narrowed by 13.6 percent.
In December, non-government credit went 6.4 percent higher (4.1 percent in real terms) to reach ROL 118,254 billion on the back of increases in both ROL- and foreign-exchange-denominated loans, by 5.6 percent and 6.6 percent respectively. When expressed in ROL, the latter moved up 6.9 percent. Government credit, net stepped up 23 percent (to ROL 24,990 billion) as a result of: (i) the decrease in deposits both in ROL and in foreign currencies of the General Account of Treasury with the National Bank of Romania; (ii) the launching of government securities on the domestic market; and (iii) the maturing of part of government securities destined for bank restructuring..
Narrow money (M1) moved up 27.8 percent to ROL 64,309 billion, as a result of the 14.7 percent growth in currency outside banks (amounting to ROL 35,635 billion) and the 48.9 percent surge in demand deposits (reaching ROL 28,673 billion). Both the expansion in currency outside banks and the significant increase in demand deposits were due to seasonal factors such as: (i) the year-end bonuses, mainly in the non-budgetary sector, and (ii) the large volume of holiday-driven sales of goods.
Quasi-money stood 6 percent higher at ROL 206,203 billion. Household savings added 8.6 percent to ROL 63,706 billion, due mainly to payment of full-year interest by the Savings Bank in December. Leaving this aside, household savings rose only 3.1 percent (0.9 percent in real terms). T-bills outstanding with households put on 2.5 percent reaching ROL 14,970 billion. Foreign-exchange deposits of households (when expressed in USD) expanded by 6.1 percent to USD 1,815 million, while the volume of foreign-exchange-denominated government securities outstanding with households was broadly unchanged (equivalent to USD 121 million).
Corporate deposits in ROL climbed 11.6 percent to ROL 26,713 billion. Time deposits displayed a 13.5 percent upsurge to ROL 15,926 billion, restricted deposits grew by 14.7 percent to ROL 5,555 billion, and the certificates of deposit went up 3.3 percent to ROL 5,231 billion.
Forex deposits of residents (including households) expressed in ROL swelled by 3.5 percent to ROL 115,784 billion (when expressed in USD, forex deposits moved up 3.3 percent to USD 3,664 million).
At end-December, non-banks held government securities worth ROL 31,679 billion (down 5.4 percent against November). Foreign-exchange-denominated government securities outstanding with non-banks were 15.9 percent lower over the month before, reaching the equivalent of USD 166 million.
Full-year broad money jumped 46.2 percent in nominal terms, exceeding the 30.3 percent inflation rate (a 12.2 percent growth in real terms). Net foreign assets surged 81.4 percent (48.9 percent when expressed in USD equivalent), on the back of the 101 percent upsurge under "Convertible currencies" (65 percent in USD equivalent), and the 24.4 increase under "Gold" (2.1 percent rise in the gold stock, when expressed in USD). In the period under review, net domestic assets added 10.7 percent (a drop of 15 percent in real terms).
During January-December 2001, non-government credit edged up 57.7 percent (21 percent in real terms), mirroring the increase both of its ROL and foreign currency component by 56.3 percent (21 percent in real terms) and 58.6 percent (30.1 when expressed in USD) respectively. Government credit, net contracted by 34 percent (49.4 percent in real terms), due mainly to the redemption of government securities destined to bank restructuring.
Narrow money (M1) climbed by 38.6 percent (6.5 percent in real terms), on the back of the 39.3 percent growth (6.9 percent in real terms) in demand deposits and the 38.4 percent pick-up (6.2 percent in real terms) in currency outside banks. Quasi-money stood 48.6 percent higher (14.1 percent in real terms) as a result of the 43 percent rise in household savings (9.8 percent in real terms), the 38.2 percent expansion (6.1 percent in real terms) in ROL deposits, and the 54.7 percent growth (26.9 percent in USD equivalent) in forex deposits of residents.
During January-December 2001, government securities outstanding with non-banks stepped up 83 percent (40.5 percent in real terms), ROL-denominated government securities increased by 94.7 percent (49.4 percent in real terms), and foreign-exchange-denominated government securities added 15.4 percent (when expressed in USD). Government securities issued for households grew 66 percent (27.4 percent in real terms). Government securities in ROL rose 77.1 percent (35.9 percent in real terms) and foreign-exchange-denominated government securities moved up 9.3 percent (when expressed in USD).