The monetary base is the aggregate of legal currency (coins and notes) and financial assets in convertible currency. In darkened words, the monetary base is the different degrees of liquidity present in the financial system.
The monetary base is the total of notes and coins in circulation added to the reserves (mandatory and optional) and deposits held with a financial system (in our case the Eurosystem).
The monetary base is therefore a liability in the balance sheet of the central bank (in our case the European Central Bank). For this is announced periodically by the banks and is considered a market mover of medium impact.
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