Domestic liquidity grows by 6.6%, year-on-year, in May 2023

Preliminary data showed that domestic liquidity (M3) grew by 6.6 percent year-on-year to about ₱16.3 trillion in May 2023.

This is the same rate of expansion recorded in the previous month. On a month-on-month seasonally-adjusted basis, M3 increased by about 0.3 percent.

Domestic claims rose by 11.4 percent year-on-year in May from 11.9 percent in the previous month.

Claims on the private sector grew by 9.3 percent in May from 9.8 percent (revised) in April, driven by the sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government also expanded by 18.3 percent in May from 20.2 percent (revised) in April owing mainly to the borrowings by the National Government.

Net foreign assets (NFA) in peso terms grew by 2.7 percent year-on-year in May following the 0.2-percent contraction in April.

The Bangko Sentral ng Pilipinas’ (BSP) NFA position expanded by 4.2 percent in May after increasing by 2.5 percent in the previous month. Meanwhile, the NFA of banks declined on account of higher bills payable.