Domestic liquidity expanded by 12.2 percent year-on-year to P20.3 trillion in April, holding steady from the revised 12.1 percent growth recorded in March, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
On a month-on-month, seasonally adjusted basis, domestic liquidity, also known as M3, rose by 0.7 percent.
The BSP said the continued expansion in money supply was mainly supported by sustained growth in credit extended to non-financial private corporations and households.
Claims on the private sector grew by 12.6 percent in April, faster than the revised 11.9 percent expansion posted in March.
Net claims on the central government also increased by 15.1 percent during the month, driven by higher outstanding government securities and lower government deposits with the BSP and commercial banks.
Meanwhile, net foreign assets (NFAs) in peso terms rose by 8.9 percent year-on-year in April, slightly faster than the 8.6 percent growth recorded in the previous month.
The BSP’s NFA position increased by 7.9 percent, while the banking sector’s NFA position likewise expanded, mainly due to higher holdings of foreign currency-denominated debt securities.
However, the narrower money supply, or M1, which consists of currency in circulation and demand deposit liabilities, eased to 8.6 percent year-on-year growth in April from the revised 9.5 percent expansion in March.
Moving forward, the BSP said it will continue to closely monitor liquidity conditions to ensure that these remain consistent with its primary mandates of price stability and financial stability.