The monetary base – the Riksbank changes statistical definition

Date 16/04/2009

The Riksbank is changing the definition of the statistical term monetary base. At present the monetary base consists of banknotes and coins in circulation. The current term does not include the liquidity reserve which the banks currently hold in the Riksbank. There is thus reason to adjust the definition and the reporting of the monetary base in such a way as to include all relevant parts.  The new definition also corresponds better with international practice.

The monetary base is now extended to include the banks’ deposits with the Riksbank and Riksbank Certificates.

The new definition entails a substantial increase in the size of the monetary base in autumn 2008. This is because of the liquidity contribution the Riksbank has made to the banks.

With effect from May, monthly data on the monetary base will be reported by Statistics Sweden in connection with the publication of the financial market statistics.