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Monetary developments: FEBRUARY 2000

31/03/2000 - Press Releases

The twelve-month rate of increase in the liquidity indicator M4N, which is monitored by the Bank of Greece, decelerated in February 2000 and stood at a level slightly lower than the reference range (5-7 per cent) for the current year. 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 maturing in up to one year) rose as follows:

February

2000 over

February

1999:

4.7% (1)

January

2000 over

January

1999:

5.9%(1)

December

1999 over

December

1998:

5.6%(1)

The slower twelve-month rate of growth of M4N in January 2000 was mainly related with a reduction in private investment in Treasury bills and an increase in private investment – either directly or through mutual funds – in other assets not included in M4N, as no Treasury bill issues were effected in February.

Regarding the evolution of key M4N components, the twelve-month rate of increase in both currency in circulation and private deposits decelerated (February 2000: 8.9 per cent, January 2000: 12.4 per cent and February 2000: 12.8 per cent, January 2000: 15.0%, respectively). By contrast, private holdings of repos demonstrated a substantial further increase (380 billion drachmas) in February 2000, while holdings of money market fund units rose slightly (55 billion drachmas). Finally, as mentioned above, private holdings of government paper maturing in up to one year declined (-254 billion drachmas). As mentioned in previous press releases, changes in individual M4N components reflect, to a large extent, intra-M4N shifts which do not affect total M4N.

Notes: (1) Provisional data.

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