At end-August broad money (M2) stood at ROL 226,557 billion, up 4.7 percent in nominal terms and 2.4 percent in real terms month on month. Broad money increased mainly on the back of the rise in net foreign assets.
Net foreign assets grew 6.5 percent to ROL 145,888 billion, due mainly to the 7.9 percent expansion under "Convertible currencies" component; the "Gold component" remained broadly unchanged. The "Convertible currencies" component went up mainly on the back of corporate and household foreign exchange deposits with banks.
Net domestic assets added 1.5 percent to ROL 80,669 billion, while domestic credit edged up 2.4 percent to ROL 122,833 billion, and the negative balance of other domestic assets, net deepened by 4 percent.
In August, non-government credit moved up 2.2 percent (it rose 11.4 percent in real terms in the first 8 months of the year) to ROL 99,369 billion on the back of the 0.4 percent growth in credits in ROL and the 2.0 percent increase in credits in foreign currencies; when expressed in ROL, the foreign-currency denominated component picked up 3.5 percent. Government credit, net stepped up 2.9 percent to ROL 23,464 billion, mainly as a result of: (i) the decrease in foreign-exchange liquidities held by the Ministry of Public Finance with the National Bank of Romania and (ii) the redemption of government securities falling due.
Narrow money (M1) rose by 2.6 percent to ROL 48,172 billion on the back of the 1.7 percent increase in currency outside banks, amounting to ROL 29,830 billion, and of the 4.1 percent rise in demand deposits to ROL 18,342 billion.
Quasi-money picked up 5.3 percent to ROL 178,386 billion. Household savings added 1.7 percent to ROL 54,030 billion accounting for 23.8 percent of the broad money. ROL-denominated government securities outstanding with households inched up 0.4 percent to ROL 14,702 billion. Foreign-exchange bank deposits outstanding with households (expressed in USD) moved up 6.2 percent, while the volume of foreign-exchange government securities outstanding with households (equivalent to USD 109.0 million) was broadly unchanged.
Corporate deposits in ROL advanced by 6.6 percent to ROL 21.695 billion, of which time deposits moved up 11.4 percent to ROL 12,549 billion, restricted deposits stepped up 1.0 percent to ROL 4,428 billion, and deposit certificates put on 0.3 percent to ROL 4,717 billion. Residents' forex deposits (including households) expressed in ROL increased by 7.0 percent to ROL 102,661 billion (equaling a 5.5 percent growth in USD terms, up to USD 3,417 million).
At end-August, non-banks held ROL-denominated government securities worth ROL 32,352 billion (up one percent over July). Foreign-exchange-denominated government securities outstanding with the non-bank sector was up 3.2 percent month on month to reach the equivalent of USD 197,8 million.