Banca Naţională a României

At end-July 2005, broad money (M2) amounted to RON 74,080 million, down 0.2 percent (-1.2 percent in real terms) month on month. In year-on-year comparison, broad money increased by 41.1 percent, or 29.1 percent in real terms.

Net foreign assets edged down 0.7 percent to RON 39,832 million, due to the 0.3 percent decrease under "Convertible currencies" and the 4.2 percent decline under "Gold" (as a result of gold stock revaluation).

Net domestic assets crept up 0.5 percent to RON 34,248 million against the background of the 1.9 percent advance in domestic credit (to RON 42,254 million) and the widening of the negative balance by 8.5 percent under other assets, net, to RON -8,006 million.

In July, non-government credit rose by 3.3 percent (2.2 percent in real terms) to RON 50,548 million, owing to the 4.2 percent growth in domestic currency-denominated loans and the 2.6 percent rise in forex-denominated loans (when expressed in euro, forex loans moved 5.0 percent higher). In year-on-year comparison, non-government credit climbed by 37.6 percent (25.9 percent in real terms) as a result of the 37.3 percent growth in domestic currency-denominated loans (25.7 percent in real terms) and the 37.8 percent expansion in foreign exchange-denominated loans expressed in domestic currency (when expressed in euro, forex loans leapt 60.7 percent).

Government credit, net, showed a negative balance of RON -8,294 million (compared to RON -7,496 million in June 2005), due mainly to the increase in deposits of the Treasury General Account.

Narrow money (M1) moved 3.6 percent ahead to RON 19,162 million, due to the 2.2 percent growth in currency outside banks (to RON 9,791 million) and the 5.1 percent rise in demand deposits (to RON 9,371 million).

Quasi-money slipped 1.4 percent to RON 54,918 million. Household savings went up 1.4 percent to RON 15,666 million, accounting for 21.1 percent of broad money. In year-on-year comparison, household savings climbed 30.8 percent, or 19.7 percent in real terms.

Corporate deposits in domestic currency picked up 1.1 percent to RON 15,047 million. Time deposits and restricted deposits went up 1.9 percent (to RON 10,666 million) and 1.5 percent (to RON 1,698 million) respectively, while certificates of deposit fell by 2.1 percent (to RON 2,683 million). At end-July 2005, corporate deposits in domestic currency surged by 70.6 percent, or 56.1 percent in real terms, over the same year-ago period.

Residents' deposits in foreign exchange (households included), expressed in domestic currency, shrank by 4.6 percent to RON 24,205 million; when expressed in euro, they dropped by 2.4 percent to EUR 6,869 million. Household deposits in foreign exchange went down 2.0 percent to RON 9,876 million (when expressed in euro, household deposits inched up 0.3 percent to EUR 2,803 million). Corporate deposits in foreign exchange fell 6.5 percent to RON 13,469 million (when expressed in euro, corporate deposits decreased by 4.3 percent to EUR 3,822 million). When expressed in euro, residents' forex deposits increased year on year by 52.4 percent, household deposits in foreign exchange by 19.6 percent and corporate forex deposits by 97.4 percent.

At end-July 2005, non-banks held government securities totalling RON 4,686 million (down 1.8 percent month on month), of which foreign exchange-denominated securities were worth EUR 195.6 million, up one percent from the previous month.