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by IANS |
Seoul, Oct 15 (IANS) South Korea's money supply increased at the fastest pace in 17 months in August, driven by rising funds amid a strong stock market, central bank data showed on Wednesday.
The country's M2, a key measure of the money supply, stood at 4,400.2 trillion won ($3.08 trillion) in August, up 1.3 per cent from the previous month, according to preliminary data from the Bank of Korea (BOK), reports Yonhap news agency.
It was the largest monthly increase since March 2024, when M2 rose 1.5 per cent.
Compared with a year earlier, the figure jumped 8.1 per cent in August, marking the sharpest annual increase since July 2022.
The reading has been on the rise since April, reflecting sustained liquidity growth in the financial system.
The M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments.
The increase came as demand deposits rose by 14.3 trillion won on-month, while investment trusts grew by 12.8 trillion won. Time deposits and installment savings with maturities under two years also went up by 8.3 trillion won in August.
"Bond-type funds have been on a constant increase, while demand deposits rose due to temporary deposits from the inflow of funds awaiting investment amid a strong local stock market and local governments' fiscal spending," a BOK official said.
Meanwhile, in July also, the money supply in South Korea increased, fuelled by a rise in funds and deposits. The country's M2, a key gauge of the money supply, stood at 4,344.3 trillion won ($3.13 trillion) in July, up 0.8 per cent from a month earlier, BOK reported earlier.
The figure has been on an increase since April. The M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments, reported Yonhap news agency.
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