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Μonetary developments: JULY 2000

13/09/2000 - Press Releases

In July 2000, the twelve-month rate of increase in the liquidity indicator M4N, which is monitored by the Bank of Greece, remained at around the same level as in June 2000. More specifically, M4N (which comprises currency in circulation, private deposits in drachmas and foreign currency, as well as private holdings of repos, bank bonds, money market fund units and government paper with a maturity of up to one year) rose as follows:

12-month percentage changes







May-July 2000



8.0% (1),(2)




Developments in the twelve-month growth rate of M4N in July 2000 are associated with inflows of funds from abroad during that month, while provisional data point to a small slowdown in credit expansion, which, however, is still remaining at high levels. Besides, the average level of the twelve-month growth rate of M4N in the thre months from May to July 2000 remained at 8.9 per cent, i.e. unchanged from its level in the previous three month period from April to June 2000. It should be noted that the reference range for M4N growth between the beginning and the end of the current year is 5-7 per cent.

Regarding the evolution of key M4N components, the twelve-month rate of increase in currency in circulation decelerated (July 2000: 7.2 per cent, June 2000: 9.4 per cent). Private deposits (in drachmas and foreign currency) declined considerably in July 2000 (-539 billion drachmas), leading to a slowdown in their twelve-month growth rate (July 2000: 8.9 per cent, June 2000: 11.5 per cent). By contrast, a large rise was observed in private holdings of repos (+618 billion drachmas), as repo yields remain higher than those on deposits and Treasury bills. Furthermore, private holdings of money market fund units increased (+119 billion drachmas) in July 2000, whereas private holdings of government paper with a maturity of up to one year dropped by 156 billion drachmas. As noted in previous press releases, what matters more is the evolution of total M4N rather than changes in its individual components, as such changes largely reflect intra-M4N shifts which do not affect total M4N.

Notes: (1)Provisional data.

           (2) Revised data.


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