Change to monetary aggregates and counterparts methodology

Starting from April 2004, in accordance with the harmonisation of the banking and monetary statistics with ECB standards a methodological change has been made to the monetary aggregates and their counterparts in the national monetary survey. For the purposes of the macroeconomic forecasting process the CNB defines two monetary aggregates - M1 and M2. These aggregates fulfil an indicative role, since they reveal information on the decision-making of economic agents. In connection with this methodological adjustment, the time series of monetary aggregates and their counterparts since 2002 have been recalculated. The national monetary survey is derived from the balance sheets of monetary financial institutions, which besides the CNB, commercial banks and branches of foreign banks operating in the Czech Republic now comprise money market funds and savings and loan associations. M1 includes currency in circulation, demand deposits and newly also overnight deposits. Within M2, quasi money is now divided into deposits with agreed maturity, deposits redeemable at notice and deposits associated with repurchase agreements. In the national monetary survey, the counterparts of the monetary aggregates have been revised to allow better analytical use.

The national monetary survey will be published in the ARAD time series system and on the CNB's website in the section Money and Banking Statistics, Part C, National Monetary Statistics.

Communications division, CNB