DJ Philippines OctoberDomestic Liquidity Up 9.5% on the Year

6 December 2015, 03:12
sathish kumar

The Philippine central bank said preliminary data show domestic liquidity in October rose 9.5% on the year, compared with the 8.7% increase in September, mainly reflecting faster growth in bank lending.

The central bank said M3, the measure of domestic liquidity, increased to 7.907 trillion pesos ($167.9 billion) in October from the 7.221 trillion pesos in the year-earlier period.

The central bank said domestic claims grew 12.4% on year in October compared with a 12.7% year-on-year increase in September.

Net foreign assets in peso terms grew 8.2% on the year in October versus a 6.8% rate of increase the previous month. The central bank's net foreign assets position continued to expand because of steady foreign-exchange inflows mainly from overseas Filipinos' remittances, business process outsourcing receipts and portfolio investments. The net foreign assets of banks likewise increased due largely to their investments in marketable debt securities.

The central bank said continued expansion of domestic liquidity in October indicates money supply remains sufficient to support economic growth.

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