ASEAN KEY DESTINATIONS
Philippines money supply increases
On a monthly, seasonally adjusted basis, M3 contracted by about 0.9 percent following an expansion of 2.1 percent in September.
BSP Governor Amando Tetangco Jr. said the growth in money supply was attributed to the increase in net foreign assets, albeit at a slower pace of 10.2 percent from 12.8 in September.
The BSP's net foreign assets position went up 20.3 percent in October from 19.2 percent in September owing to foreign exchange inflows in the form of remittances, portfolio investments and export receipts.
The net foreign assets of banks however went down by 42.3 percent, faster than the 22.6 percent contraction in September owing to the upsurge in their foreign liabilities coupled with a decrease in foreign assets.
The BSP said the expansion in net domestic assets decelerated to 1.8 percent in October relative to the 5.1 percent in September.
Credits extended to the private sector went up 10.1 percent, in line with the continued uptrend in bank lending amid the pickup in domestic demand.
Credits to the public sector slowed by 6.7 percent on the back of the 7.9 percent moderation in loans extended to local governments and other public entities.
The BSP said outstanding loans of commercial banks, net of banks' reverse repurchase placements (RRPs) with the BSP, grew by 8.4 percent in October, down from 9.8 percent in September.
Inclusive of RRPs, outstanding loans of commercial banks grew by 9.1 percent, also lower than the increase of 10.2 percent in September.
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