Category : Press Release
Date : July 30, 2021
Agency : Bangko Sentral ng Pilipinas
Title : Domestic Liquidity Expands by 6.4 Percent, Year-on-Year, in June
Article : ?Preliminary data show that domestic liquidity (M3) expanded by 6.4 percent year-on-year to about ?14.4 trillion in June 2021. This was faster than the 4.7-percent growth recorded in May. On a month-on-month seasonally-adjusted basis, M3 rose by 1.0 percent.

Domestic claims grew by 5.3 percent year-on-year in June from 2.6 percent in the previous month due mainly to the expansion in net claims on the central government, even as bank lending to the private sector remained weak. Net claims on the central government rose by 27.8 percent in June from a 22.6-percent expansion in May on the back of sustained borrowings by the National Government.

Net foreign assets (NFA) in peso terms rose by 12.7 percent in June from 14.5 percent in May. The expansion in the BSP’s NFA position reflected the increase in the country’s gross international reserves relative to the same period a year ago. Meanwhile, the NFA of banks expanded at a slower pace as banks’ foreign liabilities rose on account of higher bills payables.

The BSP will ensure that domestic liquidity remains ample to allow the economic recovery to gain traction, in line with the BSP's price and financial stability objectives. Moving forward, the BSP shall continue to provide policy support to complement the National Government’s ongoing initiatives to combat the effects of the COVID-19 pandemic on the economy.

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