At end-March, broad money (M2) amounted to lei 136,105 billion, up 3.4 percent in nominal terms (1.6 percent in real terms) against the previous month. Solely net foreign assets were accountable for the rise in broad money.
Net foreign assets increased by 12 percent to lei 44,756 billion, due to the 21.5 percent growth in foreign exchange-denominated assets, expressed in lei. Net domestic assets declined by 0.4 percent to lei 91,348 billion, against the background of a 1.3 percent rise in domestic credit that stood at lei 105,710 billion.
The 1.2 percent rise in credit to non-government, which amounted to lei 62,556 billion, was determined by the 2.8 percent growth of credit in foreign currency; credit in lei inched down by 0.9 percent. Credit to government, net rose by 1.4 percent to lei 43,154 billion due chiefly to the 5.8 percent increase in the total volume of government securities in lei held by banks (up to lei 41,386 billion). Government securities in foreign currencies held by banks fell by 14.1 percent (down to lei 9,996 billion), as a result of both the redemption of government securities worth USD 114.7 million, most of which (worth USD 75.0 million) owned by BCR, and the issue of new government securities worth USD 11.7 million. December-related issues of government securities worth lei 604.1 billion and USD 12.7 million were launched in the process of banking system restructuring.
M1 rose by 2 percent to lei 25,990 billion, whereas currency in circulation posted a 0.5 percent decline to lei 16,070 billion. In the conditions of the strike that affected the educational system, the teaching staff collected only part of their wages, which led to the fall in currency in circulation, atypical of this time of year. Quasi-money grew by 3.7 percent to lei 110,114 billion, owing to the 5.1 percent surge in residents’ lei deposits and to the 4.3 percent rise in residents’ forex deposits. Household savings continued the ascending trend recorded in the first two months of the year, but the pace in March did not exceed 2.5 percent (up to lei 42,988 billion), in contrast with the 17.0 percent increase to lei 4,837 billion in the volume of government securities in lei held by individuals.