Anti-inflation moves working, money supply down, BSP notes

Monetary policy interventions “to contain potential inflation pressures" have succeeded at slowing down the growth of the country’s money supply to 7.4 percent from 9.4 percent, the Bangko Sentral ng Pilipinas (BSP) said Friday. Money supply stood at P4.356 trillion as of Sept. 30, up by P59 billion from P4.297 trillion as of end-August and by P300.4 billion from P4.056 trillionas of end-September 2010, BSP data showed. Domestic liquidity grew by P309.112 billion last August. “(T)he slowdown in money demand growth [in September] reflects the impact of past policy actions of the BSP in reducing liquidity in the system," BSP Gov. Amando Tetangco Jr. said Quasi-money in banks increased by only P170.4 billion in September compared to P252.827 billlion in the month prior — or down by P82.427 billion. Quasi-money totaled P2.914 trillion. Currency outside depository corporations and transferable deposits, which is mostly cash in the hands of the households and businesses was steady at P1.34 trillion. Source of much of the money supply are remittances and investments. “The growth of the BSP’s net foreign assets position remained strong at 40.1 percent in September, driven by steady foreign exchange inflows from overseas Filipino remittances and portfolio investments," the BSP said. — ELR/VS, GMA News