Money supply grew faster in January
MONEY supply grew at a faster 11.5 percent year-on-year to P8.3 trillion in January on the back of “sustained demand for credit,” preliminary Bangko Sentral ng Pilipinas (BSP) data released Monday showed.
The growth in the amount of money circulating in the system, expressed as “M3,” at the start of the year exceeded the 9.4-percent expansion in December last year.
“The continued expansion of domestic liquidity during the month indicates that money supply remains adequate to support economic growth,” the BSP said in a statement.
Domestic claims climbed by 14.4 percent last January, also faster than the 11.4-percent growth posted in December, as credits to the private sector increased at a faster pace relative to the previous month, the BSP explained.
Last January, the bulk of bank loans went to the following sectors: Electricity, gas, steam and air conditioning supply; information and communication; manufacturing; real estate activities; and wholesale and retail trade, and repair of motor vehicles and motorcycles.
As for net public sector credit, the amount jumped by 22.5 percent in January, likewise faster than the 12.9-percent expansion last December.
Net foreign assets (NFA) in peso terms increased by 7.9 percent in January, a faster pace than the 6.6 percent the previous month.
“The BSP’s NFA position continued to expand during the month on the back of robust foreign exchange inflows coming mainly from overseas Filipinos’ remittances and business process outsourcing receipts,” the BSP said.
Also, “the NFA of banks increased during the month, driven largely by the increase in banks’ foreign assets due to the growth in their investments in marketable debt securities,” it added.
