S. Korea's money supply grows for 11th month in April

2024-06-14 13:36

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SEOUL, June 14 (Xinhua) -- South Korea's money supply grew for the 11th consecutive month due to robust demand for deposits and securities, central bank data showed Friday.

The seasonally-adjusted M2, or broad money, rose 0.4 percent in April compared with the previous month, keeping an upward trend since June 2023, according to the Bank of Korea (BOK).

The continued growth was attributable to strong demand for short-term financial instruments such as time deposits and profit-making securities.

The M1, or narrow money, shrank 0.8 percent in April on a monthly basis, after gaining 2.2 percent in the previous month.

The BOK had left its key rate unchanged at 3.50 percent since January 2023, after increasing it by 3.0 percentage points for the past one and a half years.

The M1 refers to currency in circulation, demand deposits and transferable savings deposits equivalent to cash. The M2 adds money market funds, time deposits and financial products that mature in less than two years.

The liquidity of financial institutions, called Lf, expanded 0.2 percent in the cited month, while the liquidity aggregate, the broadest measure of money supply, diminished 0.4 percent.

The Lf includes financial products with a maturity of over two years and liquidity at insurers and brokerages along with M2. The liquidity aggregate adds state and corporate bonds to the Lf.
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