Domestic liquidity (M3), or the money supply circulating in the financial market, grew by 6.5 percent year-on-year to about P17.4 trillion in May 2024.
This was faster than the 5.6-percent growth recorded in April, the Bangko Sentral ng Pilipinas said Friday. M3 also went up by 1.1 percent on a month-on-month on a seasonally adjusted basis.
Data from the BSP show that domestic claims expanded 10.7 percent in May, consistent with the previous month’s figure.
Claims on the private sector grew by 11.6 percent in May, from the revised-10.9 percent in April with the sustained expansion in bank lending to non-financial private corporations and households.
Net claims on the central government went up by 12.2 percent, due in part to sustained borrowings of the national government.
The net foreign assets (NFA) in peso terms rose 4.9 percent year-on-year in May, faster than 2.1 percent in April. The BSP’s NFA grew by 8.6 percent, while the NFA of banks contracted on account of higher bills and bonds payable.
The BSP said it would continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy in line with its price and financial stability objectives.
