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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.

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