Macau’s broad money supply continues to decline in December

According to statistics released by the Macau Monetary Authority, currency in circulation and demand deposits increased by 0.6% and 2.9% respectively. M1 thus increased by 2.3% over a month earlier.

At the same time, quasi-monetary liabilities fell by 0.9%. The sum of these two elements, i.e. the broad money supply or M2, decreased by 0.5% to 687.5 billion patacas.

On an annual basis, M1 and M2 fell by 6.5% and 0.7% respectively.

The shares of the pataca, Hong Kong dollar, renminbi and US dollar in M2 were 35.4%, 50.1%, 6.0% and 6.9% respectively.

Resident deposits fell 0.5 percent from the previous month to 667.7 billion patacas while non-resident deposits also fell 6.9 percent to 354.3 billion patacas.

On the other hand, public sector deposits with the banking sector increased by 0.5% to 264.5 billion patacas.

As a result, total deposits in the banking sector decreased by 2.2% from the previous month to 1,286.5 billion patacas.

Domestic loans to the private sector rose 0.1 percent from the previous month to 563.5 billion patacas, while external loans fell 2.5 percent to 739.9 billion patacas.

As a result, total loans to the private sector decreased by 1.4% from the previous month to 1,303.4 billion patacas.

At the end of December 2021, the loans/deposits ratio for the resident sector fell from 60.3% at the end of November to 60.4%.

Meanwhile, the ratio for the resident and non-resident sectors fell from 100.5% to 101.3%.

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