Money supply expands 13.5% in July
The money supply in the country jumped 13.5 percent to P10 trillion in July on sustained demand for credit.
“Demand for credit remains the principal driver of money supply growth,” the Bangko Sentral ng Pilipinas said.
Domestic claims rose 15.7 percent, faster than the 15.4 percent increase in June mainly due to to sustained growth in credit to the private sector.
“Growth in bank loans has remained strong on account of lending to key production sectors such as real estate activities; electricity, gas, stream and airconditioning supply ; manufacturing; wholesale and retail trade, repair of motor vehicles and motorcycles; and information and communication,” BSP said.
Net claims on the central government grew 13 percent as a result of increased borrowings by the national government.
Net foreign assets in peso terms went up 2.7 percent.
Foreign exchange inflows coming mainly from overseas Filipinos’ remittances, business process outsourcing receipts, and foreign portfolio investments continued to be the drivers behind the increase in its NFA position.