Preliminary data showed that domestic liquidity (M3) grew by 6.0 percent year-on-year to about ₱16.2 trillion in March 2023. This is the same rate of expansion recorded in the previous month. On a month-on-month seasonally-adjusted basis, M3 increased by about 0.2 percent.
Domestic claims rose by 12.4 percent year-on-year in March from 11.6 percent in the previous month. Claims on the private sector grew by 9.6 percent in March from 9.9 percent in February due to the sustained expansion in bank lending to non-financial private corporations and households. Net claims on the central government also increased by 21.4 percent in March from 17.5 percent (revised) in February, owing to the decline in deposits by the National Government with the BSP.
Meanwhile, net foreign assets (NFA) in peso terms decreased by 4.2 percent year-on-year in March, following the 3.1-percent contraction in February. The NFA of banks declined mainly on account of higher bills payable. Similarly, the BSP’s NFA position fell by 0.9 percent in March.
Going forward, the Bangko Sentral ng Pilipinas (BSP) will continue to ensure that domestic liquidity conditions remain in line with the prevailing stance of monetary policy, in keeping with the BSP’s price and financial stability mandates.
