Philippine domestic liquidity expands 10.2% in July

Demand for money in the Philippines expanded in July as domestic liquidity or M3 rose by 10.2 percent on-year to 3.9 trillion pesos (87.8 billion U.S. dollars), the Philippine central bank said Tuesday.

The central bank attributed the expansion of July's M3 to growth in net foreign assets (NFA). The NFA in September expanded by 18.5 percent due to inflow of remittances, portfolio investments and export receipts.

"The steady growth of M3 will help ensure adequate liquidity available to support the funding requirements of firms and households, consistent with the economy's stronger growth momentum," central bank Governor Amando M. Tetangco, Jr. said in a statement.

Net domestic assets (NDA) increased to 2.8 percent on stronger lending to both the public and private sectors.

Growth in credit extended to the public sector rose by 11.4 percent during the month, owing to the 8.8 percent expansion in credits extended to the National Government. Credits extended to local government units and other public entities grew by 20.6 percent as loans provided to the sector increased. Credits extended to the private sector rose by 10 percent.

Source: Xinhua