Seoul: South Korea's money supply continued to rise in April on an increase in short-term deposits and funds awaiting investment, central bank data showed Tuesday. The country's M2, a key gauge of the money supply, stood at an average of 4,153.9 trillion won (US$2.74 trillion) in April, up 0.6 percent, or 25.3 trillion won, from a month earlier.
According to Yonhap News Agency, the figure has been on a steady rise since November. M2 is a measure of the money supply that includes cash, demand deposits, and other easily convertible financial instruments. The Bank of Korea (BOK) attributed the April gain to increases in short-term deposits and money market funds that mostly invest in short-term products amid a rally in the local stock market.
By sector, liquidity declined 0.6 trillion won among financial institutions, while nonfinancial corporations and households saw their liquidity rise 7 trillion won, the data showed.