Preliminary data show that domestic liquidity (M3) grew by 6.0 percent year-on-year to about ₱16.1 trillion in February 2023 from the 5.6-percent (revised) growth in January. On a month-on-month seasonally-adjusted basis, M3 increased by about 0.8 percent.
Domestic claims rose by 11.6 percent year-on-year in February from 11.4 percent (revised) in the previous month. Claims on the private sector grew by 9.9 percent in February from 10.7 percent (revised) in January due to the sustained expansion in bank lending to non-financial private corporations and households. Net claims on the central government likewise increased by 17.4 percent in February from 16.5 percent in January owing to the borrowings by the National Government.
Meanwhile, net foreign assets (NFA) in peso terms decreased by 3.1 percent year-on-year in February, following the 1.0-percent contraction in January. The NFA of banks declined mainly on account of higher bills payable. Similarly, the BSP’s NFA position fell by 2.3 percent in February.
Looking ahead, the BSP will continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy in keeping with the BSP’s price and financial stability objectives.
