The monetary base expanded by Rs10,502 million or 5.7 per cent, from Rs184,214 million at the end of November 2020 to Rs194,716 million at the end of December 2020, compared to an increase of 3.5 per cent registered between end-October 2020 and end-November 2020. The rise in the monetary base resulted mostly from the increases in liabilities to Other Depository Corporations and currency in circulation. However, the annual growth rate of the monetary base dropped from 66.3 per cent in November 2020 to 57.9 per cent in December 2020.
On the sources side of the monetary base, the net foreign assets of the Bank rose by Rs16,637 million or 6.2 per cent to Rs284,981 million at the end of December 2020. Net Claims on Central Government went up by Rs7,227 million to negative Rs27,033 million at end-December 2020.