The volume of money in circulation increased by 66.8 mln lei up to 6 bn 348.4 mln lei in February 2008, according to the data in the latest bulletin of the National Bank of Moldova.

The increment in the second month of this year was preceded by a decrement of this indicator by 383.3 mln lei in January. According to NBM, the weight of money in the structure of the monetary base increased from 68.5% in January up to 68.9% in February. At the same time, the reserve share of the banks reduced from 31.5% down to 31.1%.

During February broad money M2 (currency in circulation and deposits in national currency) increased by over 660 mln lei (3.6%) and exceeded 19 bn lei. During the same period, money supply M3, which includes M2 and the deposits in foreign currency increased by 527 mln lei (1.9%) up to 28.35 bn lei.

The NBM says that the increment of M2 was determined by the increase by 4.9% of the balance account of deposits in national currency, by 1.1% of the volume of money in circulation, and by 90.5% of the balance account of the monetary market instruments. In 2007 the money in circulation increased by 29.5%, and money supply M3 increased by about 40%. In 2006, money supply M3 incremented by over one fourth, and the volume of money in circulation registered an increase by 12.56%.

We specify that according to the agreements with the IMF, by the end of the year money supply M3 is to increase only by 21.5%. To this effect, it is foreseen that during the year the NBM will undertake more active actions to sterilize the monetary mass.

In this context, since January 2008, the central bank has introduced a new monetary mass sterilization instrument through the sales transactions with state securities in the NBM portfolio. // BASA-Press



Publication date: 28 March 2008   

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