South Korea's Money Supply Rose in April on Deposits, Investment Funds
En resumen
South Korea's M2 money supply increased by 0.6% in April to an average of 4,153.9 trillion won, driven by rising short-term deposits and funds awaiting investment amid a stock market rally, according to the Bank of Korea.
Resumen generado por IA
Por qué importa
South Korea's money supply, measured by M2, has been steadily increasing since November, reflecting economic activity.
SEOUL, June 16 (Yonhap) -- South Korea's money supply continued to rise in April on an increase in short-term deposits and funds awaiting investment, central bank data showed Tuesday.
The country's M2, a key gauge of the money supply, stood at an average of 4,153.9 trillion won (US$2.74 trillion) in April, up 0.6 percent, or 25.3 trillion won, from a month earlier, according to the preliminary data from the Bank of Korea (BOK).
The figure has been on a steady rise since November.
M2 is a measure of the money supply that includes cash, demand deposits and other easily convertible financial instruments.
The BOK attributed the April gain to increases in short-term deposits and money market funds that mostly invest in short-term products amid a rally in the local stock market.
By sector, liquidity declined 0.6 trillion won among financial institutions, while nonfinancial corporations and households saw their liquidity rise 7 trillion won, the data showed.
Preguntas abiertas
- What is the outlook for money supply growth in the coming months?
- How will this trend impact inflation?
