Preliminary data show that domestic liquidity or M3 grew by 9.8 percent year-on-year to about ₱15.3 trillion in January 2022 following a 7.3-percent (revised) expansion in December, the Bangko Sentral ng Pilipinas said Monday.

On a month-on-month seasonally-adjusted basis, M3 rose by 2.8 percent.

Domestic claims increased by 9.6 percent year-on-year in January from 7.7 percent (revised) in the previous month due to the sustained expansion in net claims on the central government as well as the continued improvement in bank lending to the private sector.

Net claims on the central government rose by 19.6 percent in January from 22.1 percent (revised) in December owing to the sustained borrowings by the National Government.

Meanwhile, claims on the private sector increased by 6.1 percent in January from 2.8 percent (revised) in December as bank lending to non-financial private corporations accelerated while credit to households reverted to positive growth for the first time since December 2020.

Net foreign assets in peso terms increased by 6.2 percent in January from 6.5 percent in December.

The BSP’s NFA position grew during the month even as the country’s gross international reserves declined from a year ago.

Meanwhile, the expansion in the NFA of banks moderated as banks’ foreign assets grew at a slower pace on account of lower deposits maintained with nonresident banks.

In keeping with its price and financial stability objectives, the BSP will continue to ensure appropriate policy support for the economic recovery, even as it looks to the eventual normalization of its extraordinary liquidity measures when conditions warrant. BSP