Philippines M3 Domestic Liquidity Rises In July

Aug 31, 2007 - Philippines M3 or domestic liquidity grew 18.7% year-on-year in July after expanding 19.4% in June, the Bangko Sentral ng Pilipinas said Friday.

On a monthly basis, the seasonally adjusted M3 grew at a slower pace of 0.7% in July after increasing 1.2% in June. In May, M3 rose 20.5 percent. The central bank data showed that the domestic liquidity slowed for the third straight month in July as an impact of monetary measures taken by the bank in May.

The central bank said that the moderate growth in the domestic liquidity in July is due to a fall in net domestic assets due to steady rise in net foreign assets. The year-on-year growth of net domestic assets dropped to 0.4% in July from 3.8% in June, while the growth of net foreign assets increased to 39.6% from 31.1% during the same period.

In July, credit extended to the public sector expanded at a slightly faster pace to 10.7% from 10.5% in June. At the same time, credit to the private sector grew to 7.2% from 6.0%.