Monthly Monetary Report, December 2023

Summary:

The report analyzes the evolution of monetary aggregates, passive interest rates, loans to the private sector, and active interest rates, as well as liquidity, international reserves, and the foreign exchange market.

The report begins by examining the monetary aggregates, including the broad monetary aggregates (M1, M2, and M3) and the passive interest rates (TLP and TLM). The analysis reveals that the growth rate of the monetary aggregates has been steady, with M1 and M2 growing at an average rate of 11.4% and 10.7%, respectively, over the past year. The passive interest rates have also been influenced by the Central Bank’s monetary policy decisions, with TLP and TLM declining to 38.25% and 34.25%, respectively, as of the report’s date.

The report also delves into the private sector loans, which have been growing at a slower pace compared to the previous year. The growth rate of loans to the private sector was 8.4% in December 2023, down from 10.2% in December 2022. The decline in loan growth is attributed to the Central Bank’s efforts to control inflation and maintain financial stability.

The report further explores the liquidity situation in the banking system, highlighting the importance of maintaining adequate liquidity levels to ensure the smooth functioning of the financial market. The analysis reveals that the liquidity ratio has been steadily increasing over the past year, reaching 23.4% as of the report’s date. This indicates that the banking system has been adequately liquid to meet the demands of the financial market.

International reserves and the foreign exchange market are also analyzed in the report. The report reveals that the country’s international reserves have increased steadily over the past year, reaching $123.6 billion as of the report’s date. The analysis also highlights the importance of maintaining adequate levels of international reserves to ensure financial stability and respond to external shocks.

Lastly, the report presents various indicators that measure the monetary and financial situation, including the inflation rate, the unemployment rate, and the exchange rate. The analysis reveals that the inflation rate has been under control, with the annual inflation rate reaching 5.2% in December 2023. The unemployment rate has also been stable, at 8.5% as of the report’s date.

Overall, the report provides an in-depth analysis of the country’s monetary and financial situation, highlighting the key indicators and trends that shape the economy. The report is a valuable resource for policymakers, financial institutions, and other stakeholders seeking to understand the intricacies of the country’s monetary and financial landscape.