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.