February Call Volume Up 8.2% YoY... Increase in MMF and Demand Deposit Accounts

[Asia Economy Reporter Eunbyeol Kim] The money supply in the market showed an increase of over 8% last February.

According to the "Money and Liquidity in February" report released by the Bank of Korea on the 10th, the money supply (based on M2) in February was 2,954.6038 trillion KRW (based on the won series and average balance), marking an 8.2% increase compared to the same period last year.

M2 refers to a broad monetary indicator that includes cash, demand deposits, various savings deposits, money market funds (MMF), and time deposits with maturities under two years. Long-term financial products with low liquidity are excluded.

The year-on-year growth rate of M2 has remained high since recording 7.6% in September last year. The February growth rate is the highest since February 2016 (8.3%).

Based on seasonally adjusted data, M2 in February reached 2,955.1 trillion KRW, increasing by 0.9% (27.7 trillion KRW) compared to the previous month. This was influenced by increased credit supply to households and businesses.

Breaking down the seasonally adjusted M2 by product, money market funds (MMF) grew by 12.7 trillion KRW due to a significant increase in standby funds deposited by other financial institutions amid instability in the stock market. Demand savings deposits increased by 10.8 trillion KRW.

By economic agents, holdings by households and non-profit organizations increased by 10 trillion KRW, other financial institutions by 9.5 trillion KRW, and corporations by 4.3 trillion KRW. Other sectors also saw an increase of 1.7 trillion KRW.

This content was produced with the assistance of AI translation services.