February Transaction Volume Hits 3,274 Trillion Won 'Record High'... Liquidity Expansion Continues

Bank of Korea Announces 'Monetary and Liquidity Conditions in February 2021' on the 13th
Liquidity Increases as Financial Institutions Support 'Low-Interest Loans'

[Asia Economy Reporter Jang Sehee] Following the expansion of liquidity after COVID-19, the month-on-month growth rate of the money supply in circulation recorded the highest level since the statistics were first compiled.

According to the "Monetary and Liquidity in February 2021" report released by the Bank of Korea on the 13th, the broad money supply (M2, seasonally adjusted, average balance basis), which refers to the money supply in circulation, stood at 3,274.4 trillion KRW in February, an increase of 41.7 trillion KRW (1.3%) compared to the previous month (3,232.7 trillion KRW). This is the largest increase since the statistics were first compiled in December 2001. Compared to the same month last year, it increased by 10.7%.

M2 is a broad monetary indicator that combines cash, demand deposits, savings deposits with frequent withdrawals, and money market funds (MMF), representing liquid funds that can be converted into cash at any time.

By financial product, savings deposits with frequent withdrawals increased by 9.2 trillion KRW, and MMFs increased by 6.3 trillion KRW.

The Bank of Korea analyzed that liquidity increased significantly due to financial institutions providing low-interest loans to individual business owners and small and medium-sized enterprises.

Meanwhile, by economic agents, corporations increased by 31.5 trillion KRW, households and non-profit organizations by 9.4 trillion KRW, other financial institutions by 6.6 trillion KRW, and other sectors by 6.6 trillion KRW, showing increases across all economic agents.

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