Monetary developments: JANUARY 2000
02/03/2000 - Press Releases
In January 2000, the twelve-month rate of increase in the liquidity
indicator M4N, which is monitored by the Bank of Greece, recorded a small increase. 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 of a maturity of up to one year) rose as follows:
January |
2000 over |
January |
1999: |
5.9%(1) |
December |
1999 over |
December |
1998: |
5.6%(1) |
November |
1999 over |
November |
1998: |
8.0%(1) |
The course of the twelve-month rate of increase in M4N in January 2000
is related to the small acceleration of credit expansion to the private sector in that
month (as suggested by provisional data).
Regarding the evolution of key M4N components, the twelve-month rate of
increase in currency in circulation decelerated considerably (January 2000: 12.4 per cent,
December 1999: 21.1 per cent), as money held by the public returned to normal levels,
after a large increase in banknote holdings in December 1999 (see also the previous press
release on monetary developments). By contrast, the twelve-month rate of increase in
private deposits accelerated (January 2000: 15.0 per cent, December 1999: 13.0 per cent).
Private holdings of repos and of money market fund units rose slightly in January 2000 (by
85 billion drachmas and 76 billion drachmas respectively). Finally, private holdings of
government paper of a maturity of up to one year demonstrated a small decline of 30
billion drachmas. As mentioned in earlier press releases, changes in individual M4N
components reflect, to a large extent, intra-M4N shifts that do not affect total M4N.
Notes: (1) Provisional data.