Domestic Liquidity Grows by 5.9 Percent, Year-on-Year in December 2023

Preliminary data showed that domestic liquidity (M3) grew by 5.9 percent year-on-year to about ₱17.4 trillion in December 2023 from 7.0 percent in November 2023. On a month-on-month seasonally-adjusted basis, M3 increased by about 0.4 percent.

Domestic claims expanded by 9.0 percent year-on-year in December from 9.7 percent (revised) in the previous month. Claims on the private sector grew by 8.5 percent from 8.3 percent (revised) with the sustained expansion in bank lending to non-financial private corporations and households. Net claims on the central government also rose by 14.2 percent from 17.3 percent (revised) with the decline in the deposits of the National Government with the BSP.

Net foreign assets (NFA) in peso terms rose by 4.3 percent year-on-year in December from 3.2 percent in November. The BSP’s NFA grew by 7.4 percent. Meanwhile, the NFA of banks contracted on account of lower interbank loans receivable.

Going forward, the BSP will 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.