Domestic liquidity grows by 6.8 percent in August 2023

Preliminary data showed that domestic liquidity (M3) grew by 6.8 percent year-on-year to about ₱16.5 trillion in August from 5.7 percent in July. On a month-on-month seasonally-adjusted basis, M3 increased by about 1.6 percent.

Domestic claims expanded by 9.1 percent year-on-year in August from 8.9 percent in the previous month.

Claims on the private sector grew by 7.3 percent in August from 8.2 percent in July, driven by the sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government rose by 14.7 percent in August from 12.5 percent in July due mainly to the borrowings by the National Government.

Net foreign assets (NFA) in peso terms increased by 3.2 percent year-on-year in August following a 2.6-percent decline in July.

The Bangko Sentral ng Pilipinas’s (BSP) NFA grew by 3.2 percent in August after contracting by 0.5 percent in the previous month. Similarly, the NFA of banks went up on account of lower bonds payable.

Looking ahead, the BSP said it will continue to ensure that domestic liquidity conditions are in line with its price and financial stability objectives.