39.4 trillion won was released into the market in November last year… Disaster subsidy effect, etc.

As deposits and savings increased due to the effect of disaster aid, etc., the currency volume surged by more than 39 trillion won in November last year. Compared to the same period last year, Gwang’s call volume (M2) increased by double digits for 11 consecutive months, recording the highest level in over 13 years.

According to ‘currency and liquidity’ statistics released by the Bank of Korea on the 12th, the average money supply (based on M2) in November last year was 3589.1 trillion won, up 39.4 trillion won (1.1%) from October. In the broad sense of the currency index M2, cash, demand deposits, money market funds (MMF) in addition to money deposits (more than M1), time deposits and savings accounts of less than 2 years, beneficiary certificates, transferable deposit certificates (CDs), repurchase contingent bonds ( Short-term financial products that can be converted into cash immediately, such as RP), financial bonds of less than two years, and money trusts of less than two years are included.

The increase rate of M2 compared to the same month of the previous year was 12.9%, which was wider than the previous month (12.4%). It recorded double-digit growth for 11 consecutive months in 2021, and the largest increase in 12 years and 11 months after 13.1% in December 2008.

By economic entity, 17.2 trillion won rose from households and non-profit organizations, 19.4 trillion won from other financial institutions such as securities companies, and 14.5 trillion won from companies. A BOK official said, “Despite the slowing growth of housing-related loans, the money supply of households and non-profit organizations has increased due to the effect of the disaster subsidy payment and the sale of alternative assets such as stocks. · The increase was mainly focused on savings and savings,” he explained. The corporate money supply increased in line with the increase in financial support for SMEs and the expansion of direct financing such as capital increase.

By financial product, regular deposits and savings accounts (13.9 trillion won), financial bonds (6.1 trillion won), and beneficiary certificates (5.3 trillion won) swelled. It is interpreted that as the deposit interest rate rises, money flows into deposits and savings accounts.

Provided by the Bank of Korea


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