Money supply continues to rise in Aug. on short-term deposits

Korea's money supply continued its upward trend in August, primarily fueled by surges in short-term deposits and money trusts, according to data released by the Bank of Korea on Thursday. The nation's M2, a primary indicator of the money supply, averaged 4,266.8 trillion won ($3.18 trillion) in August, marking a 0.9 percent or 39.1 trillion won increase from the previous month.

This upward trajectory has persisted since November. M2 encompasses cash, demand deposits, and other liquid financial instruments. The BOK highlighted that short-term deposits and money trusts with maturities under two years saw a rise in August. In terms of sectors, liquidity held by nonfinancial corporations surged by 33.9 trillion won, while liquidity by households and nonprofit entities increased by 0.3 trillion won. Financial institutions also recorded a 1 trillion won increase in liquidity.