Domestic liquidity grows by 5.9%, year-on-year, in June 2023

Preliminary data showed that domestic liquidity (M3) grew by 5.9 percent year-on-year to about ₱16.4 trillion in June 2023 from 6.6 percent in May.

On a month-on-month seasonally-adjusted basis, M3 increased by about 0.2 percent.

Domestic claims rose by 10.1 percent year-on-year in June from 11.4 percent in the previous month. Claims on the private sector grew by 7.9 percent in June from 9.3 percent in May, driven by the sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government also expanded by 17.2 percent in June from 18.3 percent in May owing mainly to the borrowings by the National Government.

Net foreign assets (NFA) in peso terms fell by 2.8 percent year-on-year in June following a 2.7-percent expansion in May.

The Bangko Sentral ng Pilipinas’ (BSP) NFA position declined by 0.6 percent in June after increasing by 4.2 percent in the previous month. Meanwhile, the NFA of banks declined on account of higher bills payable.

Looking ahead, the BSP will continue to ensure that domestic liquidity conditions remain in line with the BSP’s price and financial stability objectives.