Starting January 2007, the National Bank of Romania publishes the monetary indicators according to the definitions used by the European Central Bank.
At end-May 2007, broad money (M3) amounted to RON 112,826.5 million, down 0.3 percent (0.9 percent in real terms) month on month. In year-on-year comparison, broad money went up 23.0 percent, or 18.5 percent in real terms.
Table 1. Monetary aggregates*
| INDICATORS |
31 May 2007
(RON mill.)
|
May 2007/
April 2007
(%) |
May 2007/
May 2006**
(%) |
| M1 (narrow money) |
56,714.7 |
2.7 |
53.4 |
| Currency in circulation |
15,905.9 |
2.9 |
26.3 |
| Overnight deposits *** |
40,808.8 |
2.6 |
67.5 |
| M2 (intermediate money) |
112,663.8 |
-0.2 |
23.2 |
| M1 |
56,714.7 |
2.7 |
53.4 |
| Deposits with an agreed maturity of up to and including two years (includes also deposits redeemable at notice of up to and including three months) |
55,949.1 |
-3.1 |
2.7 |
| M3 (broad money) |
112,826.5 |
-0.3 |
23.0 |
| M2 |
112,663.8 |
-0.2 |
23.2 |
| Other marketable instruments (repurchase agreements, money market fund shares and units, negotiable debt securities with a maturity of up to and including two years) |
162.7 |
-14.9 |
-48.1 |
*provisional data
**comparable data
***current accounts, sight deposits
Table 2. Broad money and its counterpart*
| INDICATORS |
31 May 2007
(RON mill.) |
May 2007/April 2007
(%) |
May 2007/May 2006**
(%) |
| Broad money (M3) |
112,826.5 |
-0.3 |
23.0 |
| Net foreign assets |
34,032.3 |
-8.0 |
-11.6 |
| Net domestic assets |
78,794.2 |
3.5 |
48.0 |
*provisional data
**comparable data
Net foreign assets dropped 8.0 percent over April 2007 to RON 34,032.3 million, as a result of "Convertible currencies" falling 8.7 percent and "Gold" shrinking 3.6 percent on account of gold stock revaluation.
Net domestic assets rose 3.5 percent to RON 78,794.2 million.
In May, non-government credit edged up 3.8 percent (3.1 percent in real terms) from April 2007 to RON 106,499.9 million. RON-denominated loans picked up 4.4 percent (3.7 percent in real terms), while foreign currency-denominated loans increased by 3.2 percent when expressed in RON and by 4.9 percent when expressed in euro. At end-May 2007, non-government credit advanced year on year by 49.1 percent (43.6 percent in real terms) on the back of the 50.3 percent growth in RON-denominated loans (44.8 percent in real terms) and the 47.8 percent rise in foreign currency-denominated loans expressed in RON (when expressed in euro, forex loans expanded by 59.8 percent).
Table 3. Non-government credit*
| INDICATORS |
31 May 2007
(RON mill.) |
May 2007/April 2007
(%) |
May 2007/May 2006**
(%) |
| Non-government credit (total) |
106,499.9 |
3.8 |
49.1 |
| RON-denominated non-government credit, of which: |
55,336.6 |
4.4 |
50.3 |
| - household credit |
26,946.3 |
4.5
| 59.5 |
| - corporate credit (non-financial corporations and non-monetary financial institutions) |
28,390.3 |
4.3 |
42.6 |
| Forex-denominated non-government credit, of which: |
51,163.3 |
3.2 |
47.8 |
| - household credit |
19,896.3 |
4.8 |
80.8 |
| - corporate credit (non-financial corporations and non-monetary financial institutions) |
32,267.0 |
2.1 |
32.4 |
*provisional data
**comparable data
Government credit1 (central government, local government and social security funds) rose 2.7 percent to RON 7,821.9 million. At end-May 2007, government credit surged 224.9 percent, or 213.0 percent in real terms, from the same year-ago period.
Deposits of non-government resident customers inched down month on month by 0.6 percent, reaching RON 98,229.1 million.
Table 4. Deposits of non-government resident customers*
| INDICATORS |
31 May 2007
(RON mill.) |
May 2007/April 2007
(%) |
May 2007/May 2006**
(%) |
| Deposits of non-government resident customers (total)*** |
98,229.1 |
-0.6 |
24.3 |
| RON-denominated deposits of residents, of which: |
67,256.5 |
-0.9 |
29.9 |
| - household deposits |
34,137.5 |
1.0
| 45.9 |
| - corporate deposits (non-financial corporations and non-monetary financial institutions) |
33,119.0 |
-2.9 |
16.7 |
| Forex-denominated deposits of residents, of which: |
30,972.6 |
0.1 |
13.8 |
| - household deposits |
17,904.6 |
1.1 |
39.3 |
| - corporate deposits (non-financial corporations and non-monetary financial institutions) |
13,068.0 |
-1.4 |
-9.0 |
*provisional data
**comparable data
***includes all deposits, irrespective of maturity
RON-denominated household deposits advanced 1.0 percent to RON 34,137.5 million. At end-May 2007, household deposits in domestic currency leapt 45.9 percent (40.5 percent in real terms) from the same year-ago period.
RON-denominated corporate deposits (non-financial corporations and non-monetary financial institutions) stood 2.9 percent lower at RON 33,119.0 million. At end-May 2007, RON-denominated corporate deposits rose year on year by 16.7 percent (12.4 percent in real terms).
Forex-denominated deposits of resident households and corporates (non-financial corporations and non-monetary financial institutions) climbed 0.1 percent to RON 30,972.6 million when expressed in domestic currency (when expressed in euro, forex deposits advanced 1.7 percent to EUR 9,464.8 million). In year-on-year comparison, residents' forex deposits expressed in euro expanded by 23.0 percent, household deposits in foreign exchange by 50.6 percent, while deposits in foreign exchange of corporates (non-financial corporations and non-monetary financial institutions) went down 1.6 percent.
1marketable securities included
NOTE:
- Narrow monetary aggregate (M1) comprises currency in circulation (banknotes and coins) plus overnight deposits (deposits immediately convertible into cash or used for making payments via bank transfer).
- Intermediate monetary aggregate (M2) comprises M1 plus deposits with an agreed maturity of up to and including two years and deposits redeemable at a period of notice of up to and including three months. The definition of M2 mirrors the interest in analysing and monitoring a monetary aggregate which, apart from cash, includes highly liquid deposits as well.
- Broad monetary aggregate (M3) comprises M2 plus marketable instruments issued by monetary and financial institutions; money market instruments, in particular money market fund shares and units and borrowings from repurchase agreements, are included in this monetary aggregate (their highly-liquid nature makes these instruments be substitutes for deposits).
The definitions of monetary aggregates in compliance with ECB methodology and the classification of financial instruments by institutional sector according to ESA 95 (European System of Accounts) gave rise to influences between monetary aggregate components and between their counterparts.
Compared to the structure of monetary indicators used by the NBR until December 2006 included, the major reclassifications are as follows:
- monetary aggregate M1 comprises, in addition to the structure employed until December 2006, RON-denominated household savings at sight and forex-denominated household and corporate deposits at sight (which were previously included under quasi-money); it is assumed that they are as liquid as RON-denominated corporate money holdings at sight;
- deposits with an agreed maturity of over two years are no longer included in broad money, as they are part of its counterpart (net domestic assets);
- deposits of local government and social security funds are included in broad money and removed from its counterpart (net domestic assets).