Manila:South Korea's money supply experienced an increase in August compared to the previous month, driven by a rise in short-term deposits and money trusts, as reported by central bank data on Thursday.
According to Yonhap News Agency, the country's M2, a key indicator of money supply, averaged 4,266.8 trillion won (US$3.18 trillion) in August. This marks a 0.9 percent increase, or 39.1 trillion won, from July, based on preliminary data from the Bank of Korea (BOK).
Since November, the M2 figure has been on a consistent upward trajectory. M2 encompasses cash, demand deposits, and other easily convertible financial instruments.
The Bank of Korea noted an increase in short-term deposits and money trusts with maturities of less than two years during August.
Sector-wise, liquidity held by nonfinancial corporations went up by 33.9 trillion won. In contrast, liquidity held by households and nonprofit organizations saw a modest rise of 0.3 trillion won, while financial institutions experienced a liquidity increase of 1 trillion won.