Monetary survey and balance sheet of other MFIs, August 2010

  28 September 2010   MONETARY SURVEY AND BALANCE SHEET OF OTHER MFIs, AUGUST 2010   In August 2010, M3 broad monetary aggregate grew by LTL 172.9 million reaching the highest level since September 2008. Net external assets (i. e. external assets minus external liabilities) of other monetary financial institutions (MFIs) contracted over the month by LTL 24.7 million. Other MFIs’ lending to residents, excluding MFIs, increased in August by LTL 162.2 million, while euro lending accounted at the end of the month for 69.9% of total lending. All three monetary aggregates (M1, M2 and M3) increased over the year by 18.7 % , 9.4 % , and 9.5 % respectively. At the end of August, M1 totalled LTL 24.8 billion, M2 was LTL 45.2 billion, and M3 made up LTL 45.8 billion. M1 and M3 went up very close to the historical i heights recorded in the third quarter of 2008, while M2 have already stepped over this threshold to reach the highest level over the last 17 years. The August increase in M3 was driven by a growth of LTL 318.5 million in deposits with agreed maturity of up to 2 years, a rise of LTL 38.4 million in currency in circulation, an increase of LTL 12.9 million in debt securities with a maturity of up to 2 years, a hike of LTL 2.3 million in repo transactions, and a surge of LTL 1.5 million in deposits redeemable at a notice of 3 months. Meanwhile, M3 growth was contained by a decline of LTL 200.8 million in overnight deposits. Monetary aggregate M3 and its components (outstanding amounts, end-of-period) 0 5 10 15 20 25 30 35 40 45 50 06 2007 09 2007 12 2007 03 2008 06 2008 09 2008 12 2008 03 2009 06 2009 09 2009 12 2009 03 2010 06 2010 LTL billion Currency in circulation Overnight deposits Other short-term deposits Marketable instruments M3   In August, MFIs’ net external assets went down by LTL 24.7 million remaining in negative territory – at the end of the month they tot