Russia's money supply rises 1.8% in Aug, annual rate declines to 17.9% - Central Bank

MOSCOW. Oct 1 (Interfax) - Russia's M2 money supply rose 1.8% to 106.2 trillion rubles in August 2024, according to information posted on the Central Bank's website.

The annual growth rate of cash declined to 17.9% by September 1, 2024, from 18.2% on August 1, having risen 8.0% in January-August 2024.

The broad money supply, excluding forex revaluation, increased 1.1% in August after rising 0.9% in July. The annual growth rate had decreased to 14.5% as on September 1 from 15.6% as on August 1.

The Central Bank said that the contribution of the banking system's requirements from organizations and households in the annual growth in the broad money supply, excluding forex revaluation, remains decisive.

The contribution totaled 23.7 trillion rubles as on September 1, 2024, having dropped by 500 billion rubles month-on-month to 6.5 trillion rubles owing to a decline in the annual growth in requirements from households. Meantime, the annual growth in requirements from organizations was little changed month-on-month at 17.2 trillion rubles. The contribution of the banking system's claims to the economy to the monthly growth in the broad money supply was unchanged month-on-month.

The contribution of budget sector operations to the annual growth in the money supply contracted to minus 300 billion rubles as on September 1.

The contribution of net foreign assets of the Central Bank and lending institutions to the annual dynamics of the money supply remained negative at minus 3.1 trillion rubles as on September 1.

M0 cash supply increased 0.1% to 16.8 trillion rubles in August, having declined 1.9% in January-August.

The annual growth rate of cash remained negative at minus 3.3% as on September 1, having increased from minus 2.7% as on August 1.

M2 money supply includes M1 money supply - cash in circulation outside the banking system and M0 money supply; and balances in the national currency on settlement, current, and other call accounts held by private individuals; and in accounts of non-financial and financial except lending organizations that are residents of the Russian Federation; and balances in the national currency on the accounts of fixed-term deposits and other funds attracted for a fixed period from individuals; and in the accounts of non-financial and financial except lending organizations that are residents of the Russian Federation.

The broad money supply includes all types of deposits in foreign currency, as well as deposit and savings certificates, in addition to the M2 money supply.