Domestic liquidity, or M3, grew 6.2 percent year-on-year in July 2025 to about P18.6 trillion, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
The M3 growth in July was faster than the revised 5.9-percent increase in June. On a seasonally adjusted basis, M3 rose 0.9 percent month-on-month.
M3 is a broad measure of money supply that includes currency in circulation, bank deposits and other financial assets that are easily convertible to cash.
As a driver of money supply, claims on the domestic sector, which includes private and government entities, grew 10.5 percent year-on-year in July, down from a revised 10.8 percent in June.
Claims on the private sector increased 11.0 percent in July, from a revised 11.4 percent in the previous month, on continued expansion in bank lending to non-financial private corporations and households.
Net claims on the central government grew 7.1 percent, after a revised 7.7-percent increase in the previous month, due to higher borrowings.
Net foreign assets (NFA) in peso terms declined 0.6 percent year-on-year in July, a smaller drop than the 1.7-percent decline in June.
The BSP’s NFA fell 1.2 percent due to a decline in gross international reserves from a year ago.
Meanwhile, banks’ NFA grew because of larger holdings of foreign currency-denominated debt instruments.
The BSP said it would continue to ensure domestic liquidity conditions are consistent with its price and financial stability objectives.
