Preliminary data show that domestic liquidity grew by 7.6 percent year-on-year to about ₱15.2 trillion in March from an 8.5 percent growth in February. On a month-on-month seasonally-adjusted basis, M3 was broadly unchanged.

Domestic claims rose by 7.3 percent year-on-year in March from 8.8 percent in the previous month due to the improvement in bank lending to the private sector and expansion in net claims on the central government.

Claims on the private sector grew by 5.6 percent in March from 4.9 percent in February as bank lending to non-financial private corporations and households rose.

Meanwhile, net claims on the central government increased by 13.3 percent in March from 21 percent in February owing to the sustained borrowings by the National Government.

Net foreign assets (NFA) in peso terms increased by 8.4 percent in March from 6.5 percent in February. The expansion in the BSP’s NFA position reflected the higher level of gross international reserves relative to the same period a year ago.

Likewise, the NFA of banks increased as banks’ foreign assets grew at a faster pace on account of higher investments in marketable debt securities and deposits maintained with non-resident banks.

The BSP will continue to monitor domestic liquidity conditions to ensure adequate support for the recovery of the domestic economy, as allowed by the evolving outlook on inflation and growth. BSP