European Money Supply

Monetary aggregates comprise monetary liabilities of MFIs and central government (post office, treasury, etc.) vis-à-vis non-MFI euro area residents excluding central government.

• M1 is the sum of currency in circulation and overnight deposits;
• M2 is the sum of M1, deposits with an agreed maturity of up to two years and deposits redeemable at notice of up to three months
• M3 is the sum of M2, repurchase agreements, money market fund shares/units and debt securities with a maturity of up to two years.

Developments

Annual growth rate

DATE	M3 (Millions)	M/M	Y/Y
8/31/2023	15,936,433	-0.15%	-1.13%
7/31/2023	15,960,972	-0.35%	-0.22%
6/30/2023	16,016,759	0.07%	0.50%
5/31/2023	16,006,049	-0.05%	1.03%
4/30/2023	16,014,222	-0.30%	1.37%
3/31/2023	16,063,015	-0.18%	2.23%
2/28/2023	16,091,469	-0.09%	2.81%
1/31/2023	16,105,915	0.13%	3.27%
12/31/2022	16,085,636	-0.38%	3.71%
11/30/2022	16,146,576	0.02%	4.68%
10/31/2022	16,143,905	-0.43%	5.04%
9/30/2022	16,214,267	0.59%	6.20%
8/31/2022	16,118,813	0.77%	6.15%
7/31/2022	15,995,607	0.37%	5.91%
6/30/2022	15,936,597	0.59%	6.29%
5/31/2022	15,843,182	0.28%	6.36%
4/30/2022	15,798,401	0.54%	6.67%
3/31/2022	15,713,225	0.40%	6.54%
2/28/2022	15,651,275	0.36%	6.66%
1/31/2022	15,595,562	0.55%	6.84%
12/31/2021	15,510,049	0.56%	7.12%
11/30/2021	15,424,394	0.36%	7.49%
10/31/2021	15,369,122	0.67%	7.84%
9/30/2021	15,267,582	0.55%	7.81%
8/31/2021	15,184,466	0.54%	8.31%
7/31/2021	15,102,842	0.73%	7.97%
6/30/2021	14,993,469	0.66%	7.77%
5/31/2021	14,895,741	0.58%	7.92%
4/30/2021	14,810,002	0.41%	8.59%
3/31/2021	14,749,009	0.51%	9.42%
2/28/2021	14,673,559	0.53%	11.62%
1/31/2021	14,596,726	0.81%	11.79%

Components of M3

Components of M3	Aug 2023 (millions)
M1	10,551
Currency in circulation	1,534
Overnight deposits	9,018
M2 - M1 (other short-term deposits)	4,482
Deposits with an agreed maturity of up to 2 years	1,981
Deposits redeemable at notice of up to 3 months	2,501
M3 - M2 (marketable instruments)	903
Repurchase agreements	121
Money market fund shares	696
Debt securities with maturity of up to 2 years	86

Counterparts of M3

Contribution of the M3 counterparts to the annual growth rate of M3

Counterparts of M3	Aug 2023 (millions)
Holdings against central government2)	427
Longer term financial liabilities	7,122
Credit to euro area residents	21,669
Net external assets	1,571
Other counterparts of M3 (residual)	244

Monthly Updates

August 2023

The annual growth rate of the broad monetary aggregate M3 was -1.3% in August 2023, compared with -0.4% in July, averaging -0.4% in the three months up to August

• The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, was -10.4% in August, compared with -9.2% in July.
• The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 23.7% in August from 23.9% in July.
• The annual growth rate of marketable instruments (M3-M2) decreased to 20.4% in August from 21.1% in July.
• The annual growth rate of deposits placed by households decreased to 0.2% in August from 0.7% in July, while the annual growth rate of deposits placed by non-financial corporations was -2.4% in August, compared with -0.6% in July. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) was -18.9% in August, compared with -15.4% in July.
• The annual growth rate of M3 in August 2023 can be broken down as follows: net external assets contributed 1.4 percentage points (down from 1.5 percentage points in July), credit to the private sector contributed 0.5 percentage points (down from 1.2 percentage points), credit to general government contributed -0.8 percentage points (up from -1.1 percentage points), longer-term financial liabilities contributed -1.8 percentage points (down from -1.6 percentage points), and the remaining counterparts of M3 contributed -0.5 percentage points (down from -0.3 percentage points).

M1

Annual growth rate

DATE	M1 (Millions)	M/M	Y/Y
8/31/2023	10,551,427	-0.69%	-10.44%
7/31/2023	10,624,843	-0.83%	-9.23%
6/30/2023	10,713,833	-0.80%	-7.98%
5/31/2023	10,800,123	-0.85%	-6.88%
4/30/2023	10,892,543	-0.75%	-5.71%
3/31/2023	10,974,755	-1.28%	-4.54%
2/28/2023	11,116,644	-1.22%	-2.86%
1/31/2023	11,254,128	-0.46%	-1.03%
12/31/2022	11,306,679	-1.14%	0.05%
11/30/2022	11,436,517	-1.00%	2.14%
10/31/2022	11,552,482	-1.42%	3.50%
9/30/2022	11,718,566	-0.54%	5.47%
8/31/2022	11,781,607	0.65%	6.99%
7/31/2022	11,705,045	0.53%	7.31%
6/30/2022	11,643,416	0.39%	7.72%
5/31/2022	11,598,259	0.40%	8.52%
4/30/2022	11,552,519	0.48%	8.89%
3/31/2022	11,497,132	0.46%	9.10%
2/28/2022	11,444,321	0.64%	9.36%
1/31/2022	11,371,220	0.62%	9.51%
12/31/2021	11,300,870	0.93%	10.04%
11/30/2021	11,196,685	0.31%	10.21%
10/31/2021	11,162,303	0.47%	10.98%
9/30/2021	11,110,553	0.89%	11.51%
8/31/2021	11,012,357	0.96%	11.55%
7/31/2021	10,907,462	0.91%	11.30%
6/30/2021	10,808,819	1.13%	10.95%
5/31/2021	10,688,133	0.74%	10.80%
4/30/2021	10,609,400	0.68%	11.48%
3/31/2021	10,538,196	0.70%	12.82%
2/28/2021	10,465,053	0.78%	15.57%
1/31/2021	10,384,079	1.11%	15.53%