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Turkey: Monthly Money and Banking Statistics - August 2020

IM Insights
By IM Insights
3 years ago
Turkey: Monthly Money and Banking Statistics - August 2020


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  1. August 2020 Monetary Developments September 30 , 2020
  2. Monetary Developments |September 30, 2020 Evaluations The broad money supply M3 grew annually by 40.9% in August 2020, following the 45.3-percent year-onyear growth in July 2020. The annual growth rate of M1, the narrowest measure of money supply, decreased from 98.9% in July to 88.2% in August 2020. The annual rate of increase in loans granted by the monetary sector to households is 50% in August 2020. Meanwhile, the loans extended to non-financial corporations increased 33% in July 2020 compared to previous year, while it increased year on year 35.2% in August 2020. Chart 1. Monetary Aggregates (August 2020, Annual % Growth) M1 Chart 2. Loans (August 2020, Annual % Growth) Non-Financial Corporations Households Private Sector* M3 55 50 45 40 35 30 25 20 15 10 5 0 -5 -10 120 100 80 60 40 2020 2019 2020 2019 2018 0 2018 20 (*) Private Sector includes Agricultural Sales and Credit Cooperatives, Non-profit Inst. Serving Households and Other as well as Non-Financial corp. and Households. An analysis of the contribution of broad money components to the annual growth in money supply reveals that the largest contribution came from time deposits, followed by demand deposits. The increase in time deposits contributed 24.5% to the 40.9% annual growth in the broad money M3 in August 2020 while demand deposits added 12.4%. Other components had a limited contribution to the growth. 1
  3. Monetary Developments |September 30, 2020 Table 1. Contribution of Broad Money Components to the Annual Growth in M3 Money Supply (August 2020) M3 August 2020 (Million TRY) June 2020 (%) July 2020 (%) August 2020 (%) 3,307,055 39.01 45.31 40.89 Funds Received from Repo Transactions 18,852 0.26 0.37 0.23 Money Market Funds 32,084 0.51 0.39 0.40 Debt Securities Issued 59,324 0.88 0.89 0.73 M2-M1 Time Deposits (TRY) Time Deposits (FX) 1,987,220 23.56 27.03 24.57 1,054,984 13.02 14.69 13.04 932,236 10.54 12.34 11.53 1,209,574 13.79 16.63 14.95 Currency Outside Banks 204,512 2.58 3.19 2.53 Demand Deposits (TRY) 353,780 4.77 5.33 4.37 Demand Deposits (FX) 651,282 6.44 8.11 8.05 M1 Source: CBRT Chart 3. Reflection of Annual Growth in M3 Money Supply to Counterpart Items (August 2020) Other Items (Net) (*) Net Foreign Assets M3 60 55 50 45 40 35 30 25 20 15 10 5 0 -5 -10 -15 2020 2019 2018 Claims on Private Sector (**) Claims on General Government Claims on Non-Bank Financial Institutions (*)Transactions of the monetary sector are netted under “Other Items (Net)”. (**) Claims on Private Sector includes Claims on Non-Financial Public Enterprises. The growth in M3 is reflected in counterparts as an increase in claims on the private sector, the general government, non-bank financial institutions and net foreign assets by 42.2%, 8.5%, 1.1% and 0.7% respectively. On the other hand, other items (net) had a reducing effect by 11.7%. 2