Money supply expands to P19.7T in January — BSP

News | National Posted on 2026-03-12 02:40:59

MANILA (PIA) – The amount of money circulating in the Philippine economy increased by 8.6 percent year-on-year to P19.7 trillion in January, faster than the 7.2 percent growth recorded in December, according to the Bangko Sentral ng Pilipinas (BSP).

The figure is measured through M3, also known as domestic liquidity, which includes cash in circulation, bank deposits, and other financial assets that can be easily converted into cash.

On a month-on-month basis, domestic liquidity grew by 0.8 percent after adjustments for seasonal variations.

Bank lending continued to support the expansion, with claims on the private sector—which include loans granted to non-financial corporations and households—rising by 10.6 percent in January, nearly unchanged from the 10.7 percent growth recorded in December.

Meanwhile, claims on the domestic sector, covering both private entities and government, grew by 10.0 percent year-on-year in January, slightly slower than the 10.5 percent growth reported in the previous month.

The BSP also reported that net claims on the central government increased by 8.9 percent, largely due to higher government borrowings.

In addition, net foreign assets in peso terms rose significantly by 10.2 percent, up from 5.9 percent in December. This was supported by a 9.2 percent increase in BSP foreign assets and a decline in foreign currency-denominated bills payable by banks.

The BSP said it will continue to monitor liquidity conditions to ensure they remain aligned with its goals of maintaining price stability and financial stability, while supporting the administration of Ferdinand R. Marcos Jr. in promoting sustained and inclusive economic growth.

NPO NEWS TEAM | PIA - PR

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