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Monetary developments: MARCH 2000

03/05/2000 - Press Releases

The twelve-month rate of increase in the liquidity indicator M4N, which is monitored by the Bank of Greece, recorded a small acceleration in March 2000 but remained 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:

March

2000 over

March

1999:

4.9% (1)

February

2000 over

February

1999:

4.7%(1)

December

1999 over

December

1998:

5.6%(1)

The small acceleration of the twelve-month growth rate of M4N in March 2000, which occurred in spite of a slowdown in total credit expansion to the public and the private sectors that month, is mainly associated with the relatively lower level of M4N in March 1999.

Regarding the evolution of key M4N components, the twelve-month rate of increase in both currency in circulation and private deposits decelerated considerably (March 2000: 4.8 per cent, February 2000: 8.9 per cent and March 2000: 8.8 per cent, February 2000: 12.8%, respectively). By contrast, private holdings of repos demonstrated a further increase (of 55 billion drachmas) in March 2000, while holdings of money market fund units rose significantly (by 216 billion drachmas). Finally, private holdings of government paper maturing in up to one year recorded a small increase (of 60 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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