Domestic liquidity grows 12% to PHP 20.4 trillion in March

Domestic liquidity (M3) grew by 12.0 percent year-on-year to PHP 20.4 trillion in March 2026, faster than the 10.3-percent increase in the previous month, based on preliminary data from the Bangko Sentral ng Pilipinas.

After adjusting for seasonal fluctuations, M3 increased by 1.7 percent month-on-month in March.

M3 is a broad measure of money supply that includes currency in circulation, bank deposits, and other financial assets that are easily convertible to cash.

The BSP said domestic liquidity growth was driven primarily by the continued expansion in borrowings by non-financial private corporations and households.

Claims on the private sector, which mainly cover borrowings by non-financial private corporations and households, grew by 11.8 percent in March from 10.6 percent in February.

Net claims on the central government increased by 12.1 percent in March, driven mainly by higher government securities issuances.

Borrowings and government securities issuances mainly comprise claims on the domestic sector, which rose by 11.5 percent year-on-year in March from 11.1 percent in February.

Net foreign assets (NFAs) in peso terms rose by 8.6 percent year-on-year in March from 7.5 percent in February.

NFAs represent the difference between claims on nonresidents and liabilities to nonresidents of depository corporations.

The BSP’s NFA position expanded by 4.9 percent. Banks’ NFA position also grew, primarily on account of lower foreign currency-denominated bills.

The narrower measure of money supply, M1, which comprises currency in circulation and current account deposit liabilities, rose by 9.4 percent year-on-year in March, faster than the 8.5-percent rise in February.

The BSP said it will continue to ensure that domestic liquidity conditions remain consistent with its price and financial stability objectives.