MONTHLY BULLETIN no. 4 2009 by dom991

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									                                           National Bank of Moldova

                                                                                                       27.05.2009
                                                                                                      Page 1 of 12

                                MONTHLY BULLETIN no. 4* 2009
                                                        April

Inflation level
In April 2009 consumer prices went up versus March 2009 by 0.3%, including for foodstuff
products and for non-foodstuff products by 0.3%, each, for services rendered to the
                                                                      population by 0.1% (chart no.
    Chart no. 1. Monthly evolution of consumer prices index (CPI) and
              of the industrial producers’ prices index (IPPI)
                                                                      1).
                                                                              Most important prices increases
  104   %                                                                     for foodstuff products were
              102.9                                                           spotted for: dietetic eggs – by
  103
                                                                              6.9%, fresh vegetables – by
  102
                                                     101.6                    5.2%, fresh fruit – by 2.2%,
                                  101.0                                       potatoes – by 1.0%, strong
                                                                      100.6
  101                                                                         drinks – by 0.1%. The biggest
            101.0                                                             reductions of prices, as
  100
                                                                              compared to the previous
                                 100.2                                100.3
  99                                                 99.9                     month, were recorded for:
                                                                              vegetable oil – by 3.6%, groats
  98                                                                          – by 1.7%, sugar – by 1.5%,
                                                             CPI
                                                                              milk and dairy products – by
  97
                                                             IPPI             1.3%, butter – by 0.9%, bakery
  96                                                                          and miller’s products – by
                    2006                 2007           2008         2009     0.6%, rice – by 0.3%.
                                                             Within the category of non-
foodstuff products, prices increases were recorded for medicines – by 1.8%, footwear – by
1.3%, furniture – by 0.5, sports items, tissues, tobacco articles – by 0.3%, each, building
materials, fuel, detergents – by 0.2%, each. Significant reductions were registered for:
washing machines – by 0.8%, colour television sets – by 0.6%, ready-made clothes – by
0.2%, knitted wear, cosmetic and perfumery articles – by 0.1%, each.
Within the group of services rendered to the population important increases were registered
in tariffs for: reparation of long-term items, sport and culture expenses – by 2.0%, each;
dwelling’s reparation and maintenance – by 0.9%; hygienic attendance services, rail
transport – by 0.6%, each; public utilities – by 0.3%; trainings and education, hotels and
hotel services, public catering – by 0.2%, each. At the same time, reductions were observed
for: ritual services – by 0.3%, telecommunications – by 0.2%.




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                                     • Phone. (373 22) 409 006 • Fax (373 22) 220 591 •
                                         National Bank of Moldova

                                                                                                        27.05.2009
                                                                                                      Page 2 of 12
From the beginning of 2009 consumer prices lessened by 1.7%, including for foodstuff
products – by 3.5%, for non-foodstuff products – by 1.7%, while for services rendered to the
population they advanced by 0.6%.
The inflation level in April 2009 versus April 2008 constituted minus 0.3%, including for
  Table no. 1. Components’ contribution, %                                        foodstuf products –
                                  March 2009/                 April 2009/         minus 6.8%, for non-
                                 February 2009               March 2009           foodstuff products –
                           contributio    contributio contributio    contribution minus 0.8% and for
                                n           n / CPI        n            /CPI
                                                                                  services rendered to the
 CPI                          -0.8          100%         0.3           100%       population – 10.4%.
  Foodstuff products             -0.6         75.0          0.1          33.3
                                                                                                 Components’
  Non-foodstuff                                                                      contribution to consumer
                                 -0.2         25.0          0.2          66.7
  products
                                                                                     prices index formation is
  Paid services                   0.0          0.0          0.0          0.00        shown in table no. 1.
  Source: NBS, NBM
                                                                  In April 2009 industrial
production prices increased by 0.6% versus March 2009 (chart no. 1) and the basic activity -
processing industry, recorded the same dynamics. Highest prices increases were observed
for the following activities: production of sugar – by 5.0%; wine manufacturing – by 2.2%;
machinery and electrical devices production – by 1.9%; production of rubber and plastic
articles – by 1.5%; wood processing and wood articles manufacturing – by 1.3%; production
of furniture – by 1.2%; manufacturing of textile articles – by 1.1%; production of hides,
leather articles and footwear – by 1.0%; production of tobacco articles, clothes items
manufacturing, furs preparing and dyeing, fruit and vegetables processing and preserving –
by 0.8%, each; manufacturing of other products from non-metal minerals – by 0.5%;
publishers, polygraphy and informative materials reproduction – by 0.4%.
Simultaneously, prices reductions were noted for the activities: metallurgy – by 4.6%;
chemical industry – by 1.7%; production of distilled strong drinks – by 1.6%; manufacturing
of paper and cardboard, manufacturing of dairy products – by 1.1%, each; cocoa, chocolate
and confectionery manufacturing – by 1.0%; manufacturing of miller’s products, starch and
starch products; production of mineral water and soft drinks; manufacturing of finite metal
articles, excluding machinery and equipment production; manufacturing of machinery and
equipment – by 0.9%, each; production of medical apparatuses, of precision, optical tools
and watch manufacturing – by 0.6%.
Prices for energy, heating, gas and water supply kept the level of March 2009, while the
prices within the mining and quarrying industry reduced by 0.6%.
The industrial production prices versus April 2008 dipped by 4.3%, while from the
beginning of 2009 – by 3.2%.
The industrial production prices index for domestic market in April 2009 kept the level of
March 2009. From the beginning of the current year, the industrial production prices for
                                                                                                               2

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                                     National Bank of Moldova

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domestic market downsized by 4.3%, while versus April 2008 advanced by 0.5%.

Monetary policy instruments

Open market operations
During April 2009, similar to the previous month, the excess liquidity within the banking
system continued to reduce. As a result, the National Bank of Moldova ceased the
sterilization operations, through the issuance of Certificates of the National Bank of
Moldova (CNB), which were performed by the NBM during the last four years. During the
first day of the reporting month the daily balance of sterilization operations at selling price
constituted 89.0 million lei, with CNB with circulation terms of 7 days issued in the previous
month.
Standing facilities
In April 2009 banks used both standing facilities extended by the National Bank of Moldova
(overnight credits and deposits).
During the month, the authorized banks placed with NBM overnight deposits in the amounts
that varied between 4.0 and 110.0 million lei, and the total volume constituted 711.0 million
lei. The daily average balance of overnight deposits for the reporting month constituted 63.0
million lei, increasing by 53.0 million lei, or 6.3 times versus the previous month.
In April 2009 banks resorted frequently to the overnight credit facility. Thus, the amount of
overnight credits extended to banks constituted 2641.5 million lei. The daily average balance
displayed 126.0 million lei, increasing by 40.5 million lei, or by 47.4% versus the previous
month.
Required reserves
Required reserves in MDL related to the tracing period of attracted funds April 6 – 20, 2009,
and maintained by banks in the period of April 21 – May 5, 2009, totalled 2056.8 million lei,
falling by 166.3 million lei, or by 7.5% versus the tracing period March 6 – 20, 2009,
maintained by banks in the period of March 21, 2009 – April 5, 2009.
Required reserves in FCC amounted as of April 30, 2009 to USD 107.6 million and EUR
115.9 million, decreasing by USD 1.5 million and EUR 3.3 million, or by 1.4 and 2.8%,
respectively, versus the end of the previous month.
Interest rates
During the month of April 2009 the interest rates on NBM monetary instruments maintained
the level of those established by the Council of administration of the National Bank of
Moldova at its meeting of February 5, 2009:
• Base rate applied on the main monetary policy short-term operations – 11.0% per year;
• Rate on overnight credits – 13.5% per year;
• Rate on overnight deposits accepted by the National Bank of Moldova – 2.0% per year.
                                                                                                           3

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                                                                                                                                                             27.05.2009
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Base rate on long-term credits (over 5 years) – 10.0% per year.

Financial markets
In April 2009, the evolution of primary market of state securities (SS) was similar to the
previous month. The participants’ demand at auctions did not covered entirely the supply
announced by the Ministry of Finance. As a result, the ascendent trend of interest rates on SS
placed in the primary market was maintained during the reporting month.
The weekly supply of state securities proposed at auctions in April remained the same – to
                                                           the level of 50.0 million lei, divided into
      Chart no. 2. Total auctions of SS traded in the
                     primary market                        treasury bills (TB) of 91, 182 and 364
                                                           days. During the second half of the month
  500
       MDL, mil.                                      %
                                                        24 the share of the TB of 91 days increased
                                                        21
  400                                                   18
                                                           on the account of the drop of those with
  300                                                   15 the maturity of 364 days, which oriented
                                                        12
  200                                                   9  banks to securities with minimum terms
  100                                                   6  of circulation.
                                                                                                                        3
    0                                                                                                                   0
                                                                                                                            The supply of the Ministry of Finance
                          Jun.



                                             Aug.

                                                    Sep.



                                                                   Nov.

                                                                          Dec.



                                                                                              Feb.



                                                                                                              Apr
                                  Jul
         Apr.2008

                    May




                                                                                   Jan.2009
                                                            Oct.




                                                                                                       Mar.




                                                                                                                            totalled 250.0 million lei, by 38.0 million
                                   Amount offered                                                                           lei more as compared to March, as a result
                                   Amount demanded
                                   Amount sold                                                                              of the performance of a bigger number of
                                   Average weighted yield (right scale)
                                                                                                                            auctions in April versus the previous
month (chart no. 2).
The demand equalled to 230.6 million lei, increasing by 38.1 million lei versus the previous
month and covered the supply in an amount of 92.2%. Consequently, the supply was
realized in an amount of 76.5% versus 85.0% of the previous month. At the same time, the
Ministry of Finance did not accept the trading of state securities with much higher rates. The
                                                    volume of SS sold amounted to 191.2
         Chart no. 3. Structure of SS traded in the million lei, increasing by 10.9 million lei
                    primary market, %
                                                    versus March.
                                                                                                                            Unlike the previous months, state
                                                                                                                            securities with the circulation term of 2
   April 2 009                                       70.7                                            19.4         9.9
                                                                                                                            years were not offered to placement.
                                                                                                                            In April 2009 versus the previous month
                                                                                                                    0.8
                                                                                                                            the volume of SS purchased by non-bank
  March 2 009                                53.0                                22.5                     23 .7             investors diminished from 24.9 to 21.5
                                                                                                                            million lei, while their weight in the total
                                                                                                                            volume of sales in the primary market –
                     0                  20                 40               60                       80             100
                             91-day T-bills                                  182-day T-bills
                                                                                                                            from 13.8 to 11.2%.
                             364-day T-bills                                 2-year SB
                                                                                                                            The average weighted maturity term of
                                                                                                                                                                    4

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                                                 • Phone (373 22) 409 006 • Fax (373 22) 220 591 •
                                  National Bank of Moldova

                                                                                                 27.05.2009
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the SS issued during the reporting month went down from 177 to 132 days, as a result of the
increase in the weight of 91-day SS, of the drop in the share of those with the maturity of
182 and 364 days, as well as of the absence of SL with the maturity of 2 years within the
structure of securities placed in April (chart no. 3).
The average weighted nominal yield on treasury bonds placed in the primary market during
the reported period accounted for 23.99% per year, versus 16.00% per year in March 2009.

Government’s debt contracted from the National Bank of Moldova
As of April 30, 2009 the state debt to the NBM remained the same as compared to the
previous month and totalled 2213.4 million lei.
State securities obtained in the own portfolio of the NBM, as a result of the re-issuance
carried out over the reporting month displayed a 91-day maturity. Interest rates on the issued
securities ranged from 22.72 to 24.47% per year. The average weighted interest rate on SS
held as of April 30, 2009 in the portfolio recorded the level of 17.81% per year – by 2.23
percentage points more versus the level as at the end of March 2009. The average maturity
of state securities in the portfolio on the last day of the reporting month constituted 48 days,
with 5 days more than during the previous month.
As a result of the reflection of calculated interests and of the evaluation of SS held in the
NBM portfolio at the market price, the balance sheet value of the state debt equalled as of
April 30, 2009 to 2235.5 million lei.
Deposits placed with the National Bank of Moldova
As of April 30, 2009 the balance of deposits placed by the Ministry of Finance with NBM
totalled 525.0 million lei. Compared to the end of the previous month the balance of deposits
did not change.
The average weighted interest rate on the balance of deposits accounted as of April 30, 2009
for 20.05% per year, while the average term on the balance of deposits scored 232 days.

Banks’ activity in the monetary market
In April 2009, the volume of interbank market transactions totalled 846.0 million lei,
decreasing by 1386.4 million lei, or by 62.1% versus the previous month.
The volume of interbank credits/deposits equalled to 839.8 million lei in April 2009,
decreasing by 1389.2 million lei, or by 62.3% as compared to March 2009. Similar to the
previous months, the essential volume of interbank credits and deposits registered the
minimum maturity of the market during the current month, the weight of overnight
transactions represented 98.0% of total volume.
The average interest rate on interbank credits/deposits in April 2009 decreased by 2.49
percentage points versus the previous month and constituted 14.44% per year. The average
weighted term of transactions constituted 2 days, with one day more versus the previous
                                                                                                        5

              • 7 Renaşterii Ave., MD 2005 Chişinău • www.bnm.md • E-mail: official@bnm.md •
                              • Phone (373 22) 409 006 • Fax (373 22) 220 591 •
                                          National Bank of Moldova

                                                                                                               27.05.2009
                                                                                                             Page 6 of 12
month.
The total volume of state securities selling-buying transactions carried out in the secondary
market equalled 6.2 million lei, increasing by 2.8 million lei versus the previous month. The
weight of transactions with banks’ clients in the total volume of transactions carried out in
the secondary market constituted 46.8%.
The average weighted nominal interest rate on SS traded in the secondary market equalled to
17.60%, increasing by 0.13 percentage points, on the background of the decrease of the
average weighted term from 186 days in March to 44 days in April 2009.
REPO operations, as well as transactions with NBM Certificates were not registered.
Interbank reference rates recorded at the end of April 2009 the following values: CHIBID
overnight – 13.91% and CHIBOR overnight – 18.69%, increasing versus the last day of the
previous month by 1.06 and 0.15 percentage points, respectively.

Credits and deposits market

The balance of credits to economy∗ went down by 74.1 million lei (0.3%) versus the end of
                                                                                               March 2009 and accounted
 Table no. 2. Indicators of credit market (MDL, million)
                       Balance at period-end                      Credits
                                                                                               for 24586.7 million lei at
                                           in                in MDL       in foreign currency  the end of April 2009. This
                     total   in MDL foreign       total
                                                        volume
                                                                 interest
                                                                           volume
                                                                                      interest evolution     was      due,
                                        currency                  rate, %             rate, %
                                                                                               namely, to the decrement
 December 2008     25122.6 14779.9 10342.7 2217.8       1620.6     22.55    597.2      14.56
                                                                                               of the balance of credits in
 January 2009      24186.1 14556.0 9630.1         870.4  510.3     23.25    360.1      13.20
                                                                                               national currency by 171.8
 February          24275.5 14529.9 9745.6        1318.9  803.2     22.93    515.7      14.06
                                                                                               million lei (1.2%), while
 March             24660.8 14535.6 10125.2 1352.5        729.3     23.13    623.2      13.30
                                                                                               the balance of credits in
 April             24586.7 14363.8 10222.9 1035.0        562.8     22.57    472.2      12.85
                                                                                               foreign            currency
                                                                                               (expressed     in    MDL)
recorded an increase by 97.7 million lei (1.0%).
The decrement of the balance of credits in MDL was due to the reduction of the balance of
credits extended to private sector and to the balance of credits extended to individuals by
130.1 million lei (1.5%) and by 84.3 million lei (1.8%), respectively, while the balance of
credits extended to state enterprises and of other organizations performing certain financial
operations increased by 0.5 million lei (0.2%) and by 42.1 million lei (4.4%), accordingly.
The balance of credits in foreign currency registered an increase determined by the growth
of the balances of credits to state enterprises, private sector and individuals by 0.3 million lei
(0.3%), by 128.2 million lei (1.5%) and by 17.5 million lei (2.5%), respectively, while the
balance credits extended to other organizations performing certain financial operations fell
by 48.3 million lei (6.0%).

∗
 According to IMF methodology, out of total credits to economy (including the interest calculated on credits and on credits of
banks under liquidation) are excluded interbank credits and credits to the Government.
                                                                                                                         6

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Expressed in USD, the balance of credits in foreign currency constituted USD 904.8 million,
going down by USD 19.0 million (2.1%) versus March 2009.
                                                                             The volume of credits in MDL in April 2009
Chart no. 4. Structure of credits in MDL extended by                         constituted USD 562.8 million lei, decreasing
                 banks to businesses                                         by 166.5 million lei, or by 22.8% versus the
                                                                             previous month.
1400          MDL, mil.
                                                                             The weight of credits to businesses of the total
1200
                                                                             volume of credits in national currency
                                                                             constituted 85.4%.
1000
                49.3%
                                                                             Within the maturity structure, credits in MDL
                                                                             with terms of over 12 months extended to
 800
                                                                             businesses recorded the level of the previous
 600
                                                                             month, and kept the maximum share of 54.6%
                1 9.6%                                                       of total. Credits with terms of 3 to 6 months
 400
                 7.4%
                                    54.5%
                                                           54.6%
                                                                             displayed a more emphasized ascendent trend,
                  4.4%                                                       with their weight increasing by 3.5 percentage
 200
                19.3%
                                    26.4%
                                              1 .5%        20.5%      5.0%   points, and constituted 5.0%, unlike the
                                    15.1%
                                               2.5%
                                                           17.1%
                                                                      2.8%   credits with terms of 6 to 12 months, with
   0
              Apr. 2008           Mar. 2009              Apr. 2009
                                                                             their weight going down to the level of 20.5%
           Up to 1 month      1 to 3 months           3 to 6 months          of total (chart no. 4).
           6 to12 months      Over 12 months
                                                                             In April 2009 the average weighted interest
                                                                              rate on credits in national currency reduced
 Chart no. 5. Structure of credits in foreign currency                        by 0.56 percentage points, down to the level
           extended by banks to businesses
                                                                              of 22.57%, as a result of the decrement of the
  1100
             MDL, mil.                                                        average rate on credits extended to businesses
  1000
                                                                              by 0.48 percentage points, down to the level
   900
                                                                              of 22.12%, while the average rate on credits
   800
                                                                              extended to individuals kept the same level of
                                                                              25.22%.
   700
                  69.9%
   600                                                                       The volume of credits in foreign currency
   500                                                                       extended to businesses constituted 470.2
   400                              78.0%                                    million lei (the equivalent of USD 42.2
   300                                                    76.2%              million, decreasing by USD 15.2 million
                  8.9%
   200                     1.2%                                              versus March 2009).
                   6.7%
   100
                  13.3%
                                    12.0% 0.6%      Within their components, credits with terms
                                                          9.5% 2.0%
                                    7.4% 2.0%             5.2% 7.1%
       0                                            of over 12 months prevailed (76.2% of total,
           Apr. 2008    Mar. 2009      Apr. 2009
        Up to 1 month 1 to 3 mon th s 3 to 6 months decreasing by 1.8 percentage points versus
        6 to12 months Over 12 months
                                                    March 2009), being extended at an average
interest rate of 12.61% (chart no. 5). At the same time, credits with terms of 1 to 3 months
displayed a more emphasized ascendant trend, with their weight increasing by 5.1
                                                                                                                         7

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                                         • Phone (373 22) 409 006 • Fax (373 22) 220 591 •
                                              National Bank of Moldova

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percentage points, and constituted 7.1% of total. They were followed by credits with terms
of 3 to 6 months, which constituted 2.0% of total, increasing by 1.4 percentage points.
The average interest rate on credits in foreign currency extended to businesses reduced by
0.45 percentage points, and constituted 12.84% in April 2009.
                                                                                                At the end of April 2009
Table no. 3. Indicators of term deposits market (MDL, million)
                 Balance at period-end                        Deposits
                                                                                                the balance of deposits
                                     in                in MDL            in foreign currency    within     the    banking
               total   in MDL foreign
                                  currency
                                           total
                                                  volume
                                                           interest rate
                                                                %
                                                                         volume
                                                                                  interest rate
                                                                                        %
                                                                                                system totalled 22376.0
                                                                                                million lei, decreasing by
December 2008 18103.6 10148.0 7955.6 3822.9       2181.1       19.75     1641.8       12.09
                                                                                                122.4 million lei (0.5%)
January 2009  17632.2 9932.3       7699.9 3004.1  1536.5       20.69     1467.6       11.81
                                                                                                versus     the    previous
February      17343.8 9383.8       7960.0 2902.8  1360.8       19.84     1542.0       11.67
                                                                                                month due to the
March         16757.9 8192.9       8565.0 3385.1  1257.5       19.36     2127.6       10.18
                                                                                                reduction of the balance
April         16693.7 7825.4       8868.3 2650.4. 1044.6       18.72     1605.8        9.66
                                                                                                of deposits in national
                                                                                                currency      by     379.7
million lei (3.3%), while the balance of deposits in foreign currency enlarged by 257.3
million lei (2.3%).
The balance of sight deposits constituted 5682.3 million lei, decreasing by 58.2 million lei
versus March 2009. Their weight diminished by 0.1 percentage points, and equalled to
25.4% in the total balance of deposits.
Simultaneously, the balance of term deposits reduced by 64.2 million lei (0.4%) and totalled
16693.7 million lei.
The balance of term deposits in MDL constituted 7825.4 million lei at the end of April
                                                   2009, decreasing by 367.5 million lei (4.5%)
    Chart no. 6. Structure of term deposits in MDL versus the previous month, as a result of the
                   attracted by banks
                                                   diminution of the balances of deposits in
         M DL, mil.
 1 600                                             MDL of individuals and of economic agents
 1 400
                                                   by 307.0 million lei (4.5%) and by 60.5
              8.6%              4.1%               million lei (4.3%), respectively.
 1 200
                                                    3.7%
                                                               The balance of term deposits in foreign
 1 000
             42.6%
                                27.8%                          currency advanced by 303.3 million lei
  800
                                                   28.0%       (3.5%), and constituted 8868.3 million lei.

                                39.1%
                                                               The volume of term deposits in MDL
  600
                                                   44.3%       attracted in April 2009 constituted 1044.6
  400        38 .8%                                            million lei, by 212.9 million lei lower as
                                18.0%                          compared to March 2009. This reduction was
  200                                              13.3%
              4.7%                                             determined by the decrease of the volume of
                                1 1.0%             10.7%
    0         5.3%                                             deposits attracted from individuals by 160.6
            Apr. 2008          Mar. 20 09         Apr. 2009
          Up to 1 month      1 to 3 months     3 to 6 months
                                                               million lei (16.2%), as well as of the volume
          6 to12 months      Over 12 months
                                                                                                                     8

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                                          National Bank of Moldova

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of deposits attracted from businesses - by 52.3 million lei (19.7%).
Accordingly, the weight of term deposits in national currency of individuals increased from
78.9% in March 2009 to 79.6% of total volume of term deposits in national currency
attracted over the reporting month.
In April 2009, deposits with terms of 3 to 6 months constituted 44.3% of total (increasing by
5.2 percentage points), and held the highest weight within the structure of term deposits
attracted in national currency. At the same time, the weight of deposits with terms of 1 to 3
months lessened by 4.7 percentage points, to the level of 13.3% of total attracted deposits
(chart no. 6).
The average interest rate on term deposits in MDL reduced over April 2009 by 0.64
percentage points, and constituted 18.72% per year (13.45% for businesses and 20.07% for
                                                               individuals, as compared to 14.31 and
   Chart no. 7. Structure of term deposits in foreign currency
                       attracted by banks
                                                               20.71%, respectively, in March 2009).
                                                                    During the reporting period the attracted
    2200   MDL, mil.           1.7%
                                                                    volume of term deposits in foreign
    2000
                                                                    currency constituted 1605.8 million lei
    1800                       2 1.0%
                                               1.4%                 (the equivalent of USD 144.0 million),
    1600                                                            decreasing by 521.8 million lei (24.5%)
    1400                                      27.1%                 on the account of the reduction of
    1200      7.3%             4 5.7%                               deposits of individuals by 460.8 million
    1000                                                            lei, or by 25.4%, as well as of deposits of
    800       43.4%                            40.3%                businesses - by 61.0 million lei, or by
    600                                                             19.5%.
                               13.4%
    400       29.3%                                In April 2009 the weight of term deposits
                                               13.9%

    200     10.8%          18.2%                   with terms of 3 to 6 months recorded a
            9.2 %                        17.3%
     0                                             decrement (by 5.4 percentage points,
          Apr. 200 8    M ar. 2009      Apr. 2009
                                                   down to the level of 40.3% of total), on
        Up to 1 month 1 to 3 months  3 to 6 months
        6 to12 months Over 12 months               the background of the sharp increase of
                                                   the weight of term deposits with terms of
6 to 2 months, which constituted 27.1% (versus 21.0% in March 2009) (chart no. 7).
During the reporting period the average interest rate on term deposits in foreign currency
reached the level of 9.66% (8.01% for busineses and 9.97% for individuals).

Dynamics of monetary indicators

Reserve money∗ increased by 0.5% (45.6 million lei) in April 2009 and constituted 8877.9
million lei. The growth of the reserve money was mainly determined by the evolution of net

∗
  Reserve money includes currency in circulation (outside the banking system), banking reserves (bank’ reserves in MDL
maintained on correspondent accounts with the National Bank of Moldova and currency with banks’ vaults) and sight deposits of
other organizations with the National Bank of Moldova.
                                                                                                                        9

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                                     • Phone (373 22) 409 006 • Fax (373 22) 220 591 •
                                              National Bank of Moldova

                                                                                                               27.05.2009
                                                                                                             Page 10 of 12
domestic assets of the National Bank of Moldova, as a result of the increase of the claims to
the Government of the Republic of Moldova by 345.6 million lei and of the NBM claims to
banks by 114.8 million lei.
The volume of currency in circulation∗ increased from 5612.0 million lei in March to
5837.0 million lei in April 2009.
Within the reserve money structure the weight of currency in circulation advanced from
63.5% in March to 65.8% in April 2009. At the same time, the share of banks’ reserves
dipped from 36.5% to 34.2%.
Broad money M2∗∗ reduced over the reporting period by 156.4 million lei, or by 0.9%, to
                                                                                 17008.5    million      lei.
 Table no. 4. Dynamics of money supply at period-end (MDL, million)              Simultaneously, money
                           Dec.
                           2008
                                  Weight
                                    %
                                           Mar.
                                           2009
                                                  Weight
                                                    %
                                                           Apr.
                                                           2009
                                                                   Growth Weight
                                                                     %      %    supply M3∗∗∗ downsized
MONEY SUPPLY (M3)        31680.74 100.0 28116.16 100.0   28217.04    0.4  100.0
                                                                                 by 100.9 million lei, or by
BROAD MONEY (M2)         21774.06  68.7  17164.90  61.0  17008.49   -0.9   60.3  0.4% and constituted
 CURRENCY IN
CIRCULATION               7578.66  23.9   5612.01  20.0   5837.00    4.0   20.7
                                                                                 28217.0 million lei at the
  SIGHT DEPOSITS IN                                                              end of April 2009 (table
  NATIONAL CURRENCY                12.7            11.9             -0.4   11.9
                          4030.54         3354.22         3342.07
                                                                                 no. 4).
     - of businesses          2935.24   9.3    2453.79   8.7   2445.07   -0.4    8.7
      - of individuals        1095.30   3.4    900.43    3.2   897.00The decrease of M2 was
                                                                         -0.4    3.2
    TERM DEPOSITS IN
    NATIONAL CURRENCY
                                                                     determined       by     the
    (including long-term)
                      10147.99 32.0  8192.95 29.1  7825.41 -4.5 27.7 reduction of the balance
    - of businesses   1845.82   5.8  1410.09 5.0   1349.56 -4.3 4.8  of deposits in national
    - of individuals  8302.17  26.2  6782.86 24.1  6475.85 -4.5 22.9
  DEPOSITS IN FOREIGN
                                                                     currency – by 379.7
  CURRENCY            9906.69  31.3 10951.26 39.0 11208.54 2.3  39.7 million lei (3.3%) and of
    - of businesses   2062.11   6.5  2504.21 8.9   2484.99 -0.8 8.8
                                                                     the balance of money
    - of individuals  7844.58  24.8  8447.05 30.1  8723.55 3.3  30.9
  MONEY MARKET
                                                                     market instruments – by
  INSTRUMENTS          16.86    0.1   5.73   0.0    4.02   29.8 0.0  1.7 million lei (29.8%). At
                                                                     the same time, the balance
of currency in circulation enlarged by 225.0 million lei (4.0%). Deposits in foreign currency
(recalculated in MDL) advanced by 257.3 million lei (2.3%). Expressed in USD, they
diminished by USD 7.2 million, or by 0.7%. The weight of deposits in foreign currency,
recalculated in MDL, in the total supply volume (M3) increased from 39.0% in March to
39.7% in April 2009.
Net (convertible) international reserves of the banking system dropped by USD 12.2
million and totalled USD 811.5 million. Within their structure, the NBM net international
reserves reduced by USD 31.4 million, while those of the banks soared by USD 19.2
million.

∗
   Currency in circulation M0 represents currency put into circulation by the National Bank of Moldova, excluding the currency
with banks’ vaults and with the vault of the National Bank of Moldova.
∗∗
   Broad money M2 includes currency in circulation (M0), deposits in MDL and money market instruments.
∗∗∗
    Money supply M3 includes broad money M2 and deposits in foreign currency of residents expressed in MDL.
                                                                                                                          10

                       • 7 Renaşterii Ave., MD 2005 Chişinău • www.bnm.md • E-mail: official@bnm.md •
                                       • Phone (373 22) 409 006 • Fax (373 22) 220 591 •
                                                                                                               National Bank of Moldova

                                                                                                                                                                                                        27.05.2009
                                                                                                                                                                                                      Page 11 of 12
External reserves of the banking system equalled in April to USD 1414.2 million,
decreasing by USD 34.6 million versus March 2009. The NBM external reserves reduced
by USD 30.3 million, down to the level of USD 1102.0 million. External liabilities of the
banking system constituted USD 602.7 million, including those of NBM (to IMF) – USD
156.3 million*.
Net domestic assets of the banking system reduced by 49.1 million lei (0.3%). In April 2009
the banking systems’s claims to the Government of the Republic of Moldova advanced by
272.2 million lei (29.3%).

Foreign exchange market
The monthly official average exchange rate of MDL against USD depreciated from MDL
        Chart no. 8. Exchange rate MDL/USD
                                                   10.8191 per USD 1 in March to
                                                   MDL 11.1488 per USD 1 in April
 11.6
      MDL/USD                                      2009 (chart no. 8).
                                                                                                                  monthly averager
     11.0                                                                                                         at period-end                                                 The official exchange rate of MDL
                                                                                                                                                                     11.1 488




                                                                                                                                                                                depreciated from MDL 10.9699 per
                                                                                                                                                          10.81 91




     10.4
                                                                                                                                                10.5622
                                                                                                                                    1 0.45 30




                                                                                                                                                                                USD 1 at the beginning of April
                                                                                                               10.3651

                                                                                                                         10.3947
                                                                                                     10.3004
                        10.4601




      9.8
                                    10.3 416




                                                                                                                                                                                2009 to MDL 11.2986 per USD 1 at
                                               10.07 51

                                                                     9.81 29



                                                                                        9.92 90
                                                                               9.6756




      9.2
                                                                                                                                                                                the end of the reporting month.
      8.6
                                                      The monthly official average
                                                                                Au g.




                                                                                                     Oct.




                                                                                                                                                                     Ap r.
                       Ap r.2 008




                                               Jun.

                                                                     Jul.




                                                                                        Sep.




                                                                                                               Nov.

                                                                                                                         Dec.




                                                                                                                                                Feb.

                                                                                                                                                          Mar.
                                    May




                                                                                                                                     Jan.2009




                                                      exchange rate of MDL against EUR
                                                      depreciated from MDL 14.1208 per
EUR 1 in March to MDL 14.7194 per EUR 1 in April 2009. At the beginning of the month
the official exchange rate of MDL against EUR constituted MDL 14.6246 per EUR 1, while
at the end of the month – MDL 14.9690 per EUR 1.
The official average exchange rate of MDL against RUB depreciated from MDL 0.3125 per
                                                                    RUB 1 in March to MDL 0.3323 per
         Chart no. 9. Monthly evolution of nominal and real
                 exchange rate (Dec. 2008 = 100%)                   RUB 1 in April 2009. At the
                                                                    beginning of the reporting month the
  100  %
                   98.75                                            official exchange rate of MDL
                                    9 7.51
   98
                98.36                                               against RUB constituted MDL
   96                                          9 4.80
                                   95.77                            0.3242 per RUB 1, while at the end
   94                                                         92.00
   92                                       92.54                   of the month – MDL 0.3412 per
                 nominal exchange rate
   90            real exchange rate
                                                           89.9
                                                                    RUB 1.
      88
                                                                                                                                                                                At the end of April 2009 as
                                                                                                  Feb.




                                                                                                                                   Mar.




                                                                                                                                                                     Apr.
            Dec.2008




                                                          Jan.2009




                                                                                                                                                                                compared to the end of December
                                                                                                                                                                                2008, MDL depreciated against
                                                                                                                                                                                USD in nominal terms by 8.0%

∗
    including accrued interest
                                                                                                                                                                                                                11

                                               • 7 Renaşterii Ave., MD 2005 Chişinău • www.bnm.md • E-mail: official@bnm.md •
                                                               • Phone (373 22) 409 006 • Fax (373 22) 220 591 •
                                            National Bank of Moldova

                                                                                                                    27.05.2009
                                                                                                                  Page 12 of 12
(indirect quotation*), while in real terms – by 10.10% (being directly proportional to the
inflation level of the Republic of Moldova and inversely proportional to the inflation level of
USA (chart no. 9).
The total volume of US dollars traded in the interbank market by banks in April 2009
constituted the equivalent of USD 132.33 million, decreasing by USD 347.32 million versus
the previous month (in March 2009 this indicator equalled to USD 479.65 million). In the
course of the reporting period the turnover of the transactions carried out by the National
Bank of Moldova in the interbank market constituted USD 52.26 million, decreasing as
compared to March 2009 by USD 178.22 million.
The total turnover of buying/selling transactions against MDL of the main foreign
currencies carried out in April 2009 in the domestic foreign exchange market equalled to the
equivalent of USD 750.2 million and reduced by 37.8% as compared to the previous month.
Acquisitions against MDL of the main foreign currencies in the domestic foreign exchange
market totalled the equivalent of USD 356.4 million, while sales – the equivalent of USD
393.8 million. Compared to the previous month, in April 2009 acquisitions against MDL
diminished by 26.4%, while sales – by 45.4%.
Out of total turnover, transactions in USD constituted 57.4%, in EUR – 39.3%, in RUB –
2.9%, in MDL – 0.2% and in UAH – 0.2%. Compared to March 2009, the weight of the
turnover in EUR went up during the reporting month by 9.8 percentage points, while the
weight of the turnover in USD diminished by 11.1 percentage points.
As of April 30, 2009 the stock of debt to IMF remained to the level of the previous month,
and constituted the equivalent of USD 155.74 million.
In April 2009 external payments were not planned by the NBM with the view of servicing
the loans extended by IMF.
As of April 30, 2009 the stock of private external debt subjected to notification with the
National Bank of Moldova (including interest-related arrears) constituted the equivalent of
USD 1171.68** million, increasing by USD 6.53 million as compared to the end of March
2009 (the equivalent of USD 1165.15∗∗ million).




*
    Us dollars per MDL 1
∗∗
   Source DMFAS 5.3 as of 15.05.2009. Starting with 18.01.2009 the Law on the foreign exchange regulation No.62-XVI of
21.03.2008 approved on 18.07.2008 came into effect. According to this Law, the direct investment operations include, inter alia,
long-term loans/credits (over 5 years) with a view of settling or maintaining sustainable economic relations. Thus, the stock as of
30.04.2009 was decreased by the amount of the mentioned credits.
                                                                                                                              12

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