BSP: Domestic liquidity grows 11% as of end-June

Money circulating in the Philippine economy grew 11.4 percent as of end-June, the Bangko Sentral ng Pilipinas (BSP) reported Wednesday. Domestic liquidity or M3 totaled P4.423 trillion as of end-June or P451 billion more than the P3.972 trillion a year earlier, the central bank said. "Fueling the expansion in domestic liquidity is the steady growth in net foreign assets at 14.8 percent in June, particularly that of the BSP," the central bank said. BSP data showed net foreign assets expanded by 14.8 percent to P3.039 trillion as of end-June from P2.647 trillion. Foreign assets of the BSP surged 33.1 percent to P2.971 trillion from P2.233 trillion, largely on sustained foreign exchange inflows of remittances by overseas Filipino as well as portfolio and direct investments. However, the net foreign assets of banks plunged 83.7 percent to P67.54 billion from P414.48 billion as loan receivables from foreign banks fell and liabilities rose with higher bills payables and placements made by the head offices or other branches of foreign banks in their Philippine branches. Data also showed the level of net domestic assets almost unchanged at P2.485 trillion. "The BSP continues to closely monitor monetary conditions, particularly as foreign exchange inflows are expected to remain strong in the near term to ensure that the amount of liquidity in the financial system remains in line with the BSP's price and financial stability objectives," the central bank explained. — VS, GMA News