Seoul: South Korea's money supply continued to rise in June on an increase in short-term deposits and funds, central bank data showed Friday. The country's M2, a key gauge of the money supply, stood at an average of 4,213 trillion won (US$2.97 trillion) in June, up 0.7 percent, or 29.4 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) reported that short-term deposits and money market funds, which predominantly invest in short-term products, saw an increase in June.
By sector, liquidity increased by 45.7 trillion won among nonfinancial corporations and 5.4 trillion won among financial institutions. However, liquidity held by households and nonprofit organizations fell by 19.8 trillion won, as the latest findings indicated.