The expansion in credits to the domestic sector and adjustments in special deposits accounts (SDA) pushed the country’s money supply to a record P6 trillion at end-July, the Bangko Sentral ng Pilipinas (BSP) said over the weekend.
Under the Standardized Report Forms (SRFs) format, domestic liquidity (M3) grew by 30.1 percent year-on-year at end-July, faster than the 20 percent recorded the previous month, making July 2013 M3 growth the highest on record since December 2002, the BSP said.
On a monthly basis, seasonally adjusted M3 also grew at a faster pace – 8.9 percent compared to the 3.7-percent in June.
Claims in the domestic sector grew by 11.3 percent in July from 11.1 percent in June because higher claims in the private sector.
The BSP said steady foreign exchange inflows from remittances, business process outsourcing receipts, and portfolio investments spurred growth of net foreign assets (NFA).
The central bank’s NFA position was 9.3 percent year-on-year in July compared to 6 percent in June.
Latest baseline forecasts of the central bank suggest that inflation will remain manageable even with stronger growth in domestic liquidity in the new few months.
MAYVELIN U. CARABALLO