The narrow money (M1) in Romania's economy - a measure of the cash and overnight deposits in the central bank's vaults - increased by 22.7% year-on-year at the end of June, from 21.9% YoY at the end of last year, according to the National Bank of Romania (BNR).

The central bank has accommodated increasingly faster growth rates for this monetary aggregate over the past years, which increased by 11.7% YoY at the end of 2018, 17.8% YoY at end-2019, 21.9% YoY end-2020 to reach now 22.7%.

Accordingly, this resulted in an increasingly faster - yet not proportional and at a lower level - advance in the broad money (M3) - the most inclusive method of calculating a given country's money supply - to 17.3% YoY at the end of June from 8.9% YoY at the end of 2018. 

iulian@romania-insider.com

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