November Money Supply Increased by 9.7% Year-on-Year to 3,178.4 Trillion Won

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Amid ongoing liquidity expansion following the COVID-19 pandemic, the money supply in circulation increased by nearly 10% year-on-year in November as well.

According to the 'November 2020 Money and Liquidity' report released by the Bank of Korea on the 13th, broad money supply (M2, seasonally adjusted and average balance basis), which represents the money supply in circulation, stood at 3,178.4 trillion KRW in November, up 27.9 trillion KRW (0.9%) from the previous month (3,150.5 trillion KRW). Compared to the same month last year, it rose 9.7%, maintaining the same growth rate as in October.

M2 is a broad monetary indicator that includes cash, demand deposits, savings deposits with frequent withdrawals, and money market funds (MMFs), representing liquid funds that can be converted into cash at any time. Since the spread of COVID-19, liquidity has increased, with a 9.1% year-on-year rise in April last year, followed by continuous increases in the 9-10% range year-on-year.

By financial product, money trusts under two years increased by 7.9 trillion KRW, demand deposits by 6.5 trillion KRW, and savings deposits with frequent withdrawals by 4.8 trillion KRW.

By economic agents, corporations increased by 15.8 trillion KRW, households and non-profit organizations by 10 trillion KRW, other financial institutions by 4 trillion KRW, and other sectors by 2.2 trillion KRW, all showing growth.

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