▲ An official inspects 50,000 won banknotes at Hana Bank's counterfeit response center in Seoul, in this file photo taken July 17, 2024. (Yonhap)

money supply-tally

Money supply rises for 4th month in Feb. on rising savings deposits: BOK

SEOUL, April 15 (Yonhap) -- South Korea's money supply rose for the fourth consecutive month in February, as increases in savings deposits offset a decline in certificates of deposit (CDs), central bank data showed Wednesday.

The country's M2, a key gauge of the money supply, stood at an average of 4,114 trillion won (US$2.79 trillion) in February, up 600 billion won from a month earlier, according to the preliminary data from the Bank of Korea (BOK).

The figure rebounded in November after declining the previous month and has since posted monthly gains.

M2 is a measure of the money supply that includes cash, demand deposits and other easily convertible financial instruments.

"Demand deposit-type savings rose as idle funds awaiting fiscal execution by local governments increased," a BOK official said. "Marketable instruments, on the other hand, declined as the issuance of CDs fell due to worsening issuance conditions and reduced funding demand."

By sector, liquidity increased by 9.4 trillion won among financial institutions and 5 trillion won among non-financial corporations, while liquidity held by households and nonprofit organizations fell by 10.5 trillion won, the data showed.

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