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.