by: Sarah Joson
Wednesday, February 19, 2014 | Outsourcing News |
According to Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr., the money supply in the Philippines will go back to its normal growth rate this year.
As per his definition, the normal growth is between 12-14 percent. He explained that local financial institutions will ease on investing in the BSP’s special deposits accounts (SDAs) and allocate budget to other projects to boost the economy. As for the lenders, he said they are ready to go back to the market.
In December of last year, money supply growth was seen declining, even if it came from a strong growth record in November. For the country’s M3, or domestic liquidity, it posted a year-on-year growth of 32.7 percent last December, which is a few notches down from November’s 36.5 percent.
The bullish foreign exchange inflows from the business process outsourcing (BPO) sector and OFW remittance transaction receipts propelled the increase in liquidity last December. The 11.6-percent increase in domestic claims also fuelled the M3 growth from the private sector.
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