A STATEMENT OF METHODOLOGY FOR THE COMPILATION OF THE MONETARY SURVEY

The monetary survey (Table 2) shows the financial relationship between the group of financial institutions that provide the economy's means of payments, and the other transactor groups. It presents the liabilities of the monetary system as an array of claims held by the rest of the domestic economy on the issuers of money. It revolves around the following identity: Net Foreign Assets + Domestic Credit = Money Supply + Net Other Items.

The first step in deriving the monetary survey involves the preparation of the Bank of Mauritius accounts (Tables 3 and 4). The second step is the consolidation of the activities of the ten commercial banks (Tables 6 and 7). The third step involves the consolidation of the accounts of the Bank of Mauritius and the ten commercial banks.

The major components of the monetary survey are:

1. Net Foreign Assets is the difference between total foreign assets and total foreign liabilities of the Bank of Mauritius and commercial banks.

2. Domestic credit is the sum of net credit to Government and credit to the private sector. Credit to Government is reported on a net basis, that is, less the deposits of central Government with Bank of Mauritius and commercial banks. Credit to the private sector is the sum of credit extended to commercial or non-central Government sectors by Bank of Mauritius and commercial banks.

3. Aggregate monetary resources or broad money supply M2, is the sum of narrow money supply M1 and quasi-money. M1 comprises currency outside banks or currency with public, demand deposits held with commercial banks, deposits of Offshore Banking Units held with commercial banks and domestic non-bank deposits held with Bank of Mauritius. Quasi-money comprises savings deposits, time deposits, margin deposits and foreign currency deposits, all of which are held with commercial banks.

4. Net other items are unclassified liabilities less unclassified assets.