At end-June 2002, broad money (M2) came in at ROL 300,912 billion, up 3.5 percent in nominal terms (2.3 percent in real terms) against end-May. The increase in broad money resulted from the divergent developments in its counterparts.
Table 1. Broad money and its components
| INDICATORS |
31 May 2002
(ROL billion) |
30 June 2002
(ROL billion) |
Change
(%) |
| Broad money |
290,629 |
300,912 |
+3.5 |
| Net foreign assets |
201,420 |
197,918 |
-1.7 |
| Net domestic assets |
89,209 |
102,994 |
+15.5 |
Net foreign assets fell by 1.7 percent to ROL 197,918 billion, due to the 2 percent drop under "Convertible currencies" and the broadly unchanged "Gold" component. The "Convertible currencies" component went down on the back of the payments on external public debt.
Net domestic assets moved 15.5 percent ahead to ROL 102,994 billion. Domestic credit rose by 14.9 percent to ROL 164,421 billion, while the negative balance under other assets, net widened by 14.1 percent.
In June, non-government credit picked up 2.9 percent (13.9 percent real increase in the first half year) to ROL 147,267 billion due to the 3.1 percent growth in ROL denominated loans and the 2.8 percent advance in foreign-exchange denominated loans (3 percent growth when expressed in USD).
Government credit, net amounted to ROL 17,154 billion; government resumed the position of net debtor towards the banking system. The ROL 17,181 step up in government credit, net, was chiefly the result of the decline in foreign exchange deposits of the Ministry of Public Finance with the National Bank of Romania following the payments of external public debt service.
Narrow money (M1) went up by 7.6 percent to ROL 64,366 billion, on account of the 13.2 percent climb in currency outside banks (to ROL 39,615 billion) and the 0.2 percent fall in demand deposits (to ROL 24,752 billion).
Table 2. Narrow money and its components
| INDICATORS |
31 May 2002
(ROL billion) |
30 June 2002
(ROL billion) |
Change
(%) |
| M1 |
59,796 |
64,366 |
+7.6 |
| Currency outside banks |
34,997 |
39,615 |
+13.2 |
| Demand deposits |
24,799 |
24,752 |
-0.2 |
Quasi-money moved 2.5 percent higher to ROL 236,545 billion. Household savings rose 2.2 percent to ROL 75,447 billion, accounting for 25.1 percent of broad money against 25.4 percent at end-May.
Corporate deposits in ROL added 7.6 percent to ROL 36,535 billion. Time deposits put on 8.9 percent to ROL 22,099 billion, restricted deposits advanced 5.6 percent (to ROL 6,795 billion) and certificates of deposits grew 5.9 percent (to ROL 7,640 billion).
Forex deposits of residents (including households), when expressed in ROL, stepped up 1.2 percent to ROL 124,564 billion (when expressed in USD, forex deposits moved up 1.4 percent to USD 3,721 million). Forex deposits of households picked up 1.1 percent (equivalent to USD 1,823 million).
Table 3. Quasi-money and its components
| INDICATORS |
31 May 2002
(ROL billion) |
30 June 2002
(ROL billion) |
Change
(%) |
| Quasi money |
230,833 |
236,545 |
+2.5 |
| Household savings |
73,852 |
75,447 |
+2.2 |
| ROL-denominated deposits |
33,939 |
36,535 |
+7.6 |
| Forex-denominated deposits of residents, |
123,042 |
124,564 |
+1.2 |
| - of which households |
60,491 |
61,041 |
+0.9 |
At end-June, non-banks held government securities worth ROL 42,275 billion (down 3 percent month on month). Foreign-exchange government securities outstanding with non-banks amounted to the equivalent of USD 171 million, down 8.5 percent versus May.
Table 4. Government securities held by non-banks
| INDICATORS |
31 May 2002 |
30 June 2002 |
Change (%) |
| ROL-denominated government securities held by non-banks (ROL billion), |
37,301 |
36,552 |
-2.0 |
| - of which households |
18,650 |
18,521 |
-0.7 |
| Forex-denominated government securities held by non-banks (USD million equiv.) |
186.7 |
170.9 |
-8.5 |
| - of which households |
108.9 |
93.2 |
-14.4 |