4419_not-searchable
/en/bank-og-finansmarked/statistikker/m2/maaned
4419
Record high circulation of notes and coins
statistikk
2007-01-31T10:00:00.000Z
Banking and financial markets
en
m2, The money supply M2, money, notes and coins, assetsFinancial indicators, Banking and financial markets
false

The money supply M2, December 2006

Content

Published:

This is an archived release.

Go to latest release

Record high circulation of notes and coins

Notes and coins in circulation amounted to NOK 54.8 billion at end-December, the highest ever recorded. The broad monetary aggregate M2 amounted to NOK 1 226 billion, following an increase in twelve-month growth from 13.1 per cent to 13.3 per cent during December.

The contribution to the high growth in money supply comes primarily from non-financial enterprises. The money supply of these enterprises amounted to NOK 425 billion at end-December. Twelve-month growth was as high as 34.9 per cent, up from 33.2 per cent the previous month. The high monetary growth may be connected with high turnover and good profitability in business and industry. As shown by the C2 statistics, the growth in enterprise gross debt was also high (20.6 per cent), see http://www.ssb.no/english/subjects/11/01/k2_en/ .

Credit indicator C2. Percentage change

Moderate growth in household money supply

The money supply of households amounted to NOK 663 billion at end-December. Twelve-month growth was 5.4 per cent, down from 6.3 per cent to end-November. Accordingly, growth in household money supply was less than half the growth in household gross debt according to the C2 statistics (12.5 per cent), see link above. Measured in NOK, the difference is NOK 34 billion as against NOK 173 billion, which may indicate that households continue to reduce their net financial wealth. However, household money supply only amounts to about 30 per cent of household total financial assets at end-September 2006. For more information about the financial position of households, see http://www.ssb.no/finsek_en/

Monetary aggregates, growth (per cent)
  October 2006 November 2006 December 2006
M0 - 12 mth 15.7 -0.6 -16.7
M1 - 12 mth 20.1 19.7 22.3
M2 - 12 mth 12.2 13.1 13.3
M2 - 3 mth mov.avg. 12.8 13.6  

The money supply M2 consists of notes and coins, unrestricted bank deposits, certificates of deposit and units in money market funds owned by households, non-financial enterprises, municipalities and financial enterprises other than state lending institutions, banks and money market funds.