Domestic liquidity (M3) or money supply sustained its growth in March 2024, reflecting increased demand despite the high interest rates.
The Bangko Sentral ng Pilipinas said M3 increased 5.7 percent year-on-year to about P17.2 trillion in March, faster than the 5.1-percent rise in February.
Data showed that on a month-on-month seasonally-adjusted basis, M3 in March increased by about 0.9 percent from P16.9 trillion in February. It also went up from P16.3 trillion in March 2023.
The BSP said it would continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in keeping with its price and financial stability objectives.
Domestic claims expanded 10.8 percent year-on-year in March from the revised 9.6 percent in the previous month.
Claims on the private sector grew 10.9 percent, faster than 10.3 in February with the sustained expansion in bank lending to non-financial private corporations and households.
Net claims on the central government expanded 15 percent due to the decline in the deposits of the government with the BSP.
Net foreign assets (NFA) in peso terms rose 5 percent year-on-year in March from 3.6 percent in February. The BSP’s NFA grew by 6.2 percent.
Data showed banks’ NFA contracted due to higher bills payable.