At end-July 2002, broad money (M2) amounted to ROL 303,477 billion, up 0.9 percent in nominal terms (0.5 percent in real terms) against end-June. The increase in broad money resulted from the divergent developments in its counterparts.
Table 1. Broad money and its components
| INDICATORS |
30 June 2002
(ROL billion) |
31 July 2002
(ROL billion) |
Change
(%) |
| Broad money |
300,912 |
303,477 |
+0.9 |
| Net foreign assets |
197,918 |
203,313 |
+2.7 |
| Net domestic assets |
102,994 |
100,164 |
-2.7 |
Net foreign assets climbed 2.7 percent to ROL 203,313 billion, due to the 3.2 percent rise under "Convertible currencies" and the broadly unchanged "Gold" component. The "Convertible currencies" component expanded on the back of purchases by the central bank on the forex market. .
Net domestic assets moved down 2.7 percent to ROL 100,164 billion. Domestic credit fell 1.6 percent to ROL 161,825 billion, and the negative balance under other assets, net widened by 0.4 percent.
In July, non-government credit fell 0.9 percent (12.4 percent real increase in the first seven months of the year) to ROL 145,975 billion, on account of the 0.9 percent increase in ROL denominated loans and the 0.1 percent fall in foreign-exchange denominated loans (1.8 percent decline when expressed in ROL).
Government credit, net went down 7.6 percent to ROL 15,850 billion as a result of (i) the increase in ROL-denominated balances of the Ministry of Public Finance with the National Bank of Romania; (ii) the redemption of T-bill issues falling due; (iii) the increase in PHARE funds allotted by the European Community; (iv) the contraction in foreign exchange-denominated balances of the Ministry of Public Finance with the National Bank of Romania.
Narrow money (M1) stepped up by 2.1 percent to ROL 65,734 billion, on account of the 1.3 percent drop in currency outside banks (to ROL 39,106 billion) and the 7.6 percent jump in demand deposits (to ROL 26,628 billion).
Table 2. Narrow money and its components
| INDICATORS |
30 June 2002
(ROL billion) |
31 July 2002
(ROL billion) |
Change
(%) |
| M1 |
64,366 |
65,734 |
+2.1 |
| Currency outside banks |
39,615 |
39,106 |
-1.3 |
| Demand deposits |
24,752 |
26,628 |
+7.6 |
Quasi-money picked up 0.5 percent to ROL 237,743 billion. Household savings rose 2.7 percent to ROL 77,508 billion, accounting for 25.5 percent of broad money against 25.1 percent at end-June.
Corporate deposits in ROL added 2.2 percent to ROL 37,336 billion. Time deposits put on 1.7 percent to ROL 22,468 billion, restricted deposits inched up 0.2 percent (to ROL 6,811 billion) and certificates of deposits grew by 5.5 percent (to ROL 8,057 billion).
Forex deposits of residents (including households), when expressed in ROL, dipped 1.3 percent to ROL 122,899 billion (when expressed in USD, forex deposits moved up 0.4 percent to USD 3,737 million). Forex deposits of households went up 0.8 percent (equivalent to USD 1,839 million).
Table 3. Quasi-money and its components
| INDICATORS |
30 June 2002
(ROL billion) |
31 July 2002
(ROL billion) |
Change
(%) |
| Quasi money |
236,545 |
237,743 |
+0.5 |
| Household savings |
75,447 |
77,508 |
+2.7 |
| ROL-denominated deposits |
36,535 |
37,336 |
+2.2 |
| Forex-denominated deposits of residents |
124,564 |
122,899 |
-1.3 |
| - of which households |
61,041 |
60,467 |
-0.9 |
At end-July, non-banks held government securities worth ROL 42,773 billion (up 1.3 percent month on month). Foreign-exchange government securities outstanding with non-banks amounted to the equivalent of USD 147.6 million, down 13.1 percent versus June.
Table 4. Government securities held by non-banks
| INDICATORS |
30 June 2002 |
31 July 2002 |
Change (%) |
| ROL-denominated government securities held by non-banks (ROL billion) |
36,552 |
37,920 |
+3.7 |
| - of which households |
18,521 |
18,187 |
-1.8 |
| Forex-denominated government securities held by non-banks (USD million equiv.) |
169.8 |
147.6 |
-13.1 |
| - of which households |
91.6 |
69.4 |
-24.3 |