Money supply grows as term deposits pick up

  • By Crystal Hsu / Staff Reporter

The country’s money supply, as measured by M1B and M2, grew 9.81% and 8.12% respectively last month, as securities accounts shrank and term deposits increased, the Bank said on Tuesday. central bank.

The growth rate of the narrower M1B measure, which refers to cash and cash equivalents, slowed further as corrections on the TAIEX pushed investors away, the central bank said.

Their conservative sentiment accounted for a NT$94.5 billion ($3.2 billion) drop in securities account balances, the biggest drop in 12 years, he said.

Photo: Tsai Ching-hua, Taipei Times

The broader M2 measure – which includes M1B, term deposits, term savings deposits, foreign exchange deposits and mutual funds – gained 8.12% year-on-year, thanks to flows of funds to time deposits and foreign currency deposits, the bank said.

Time deposits and foreign currency deposits hit new highs of NT$15.2 trillion and NT$7.8 trillion respectively, helped by a 25 basis point interest rate hike in March and forecasts good performance of the US dollar, he said.

Rising interest rates prompted local businesses to park profits from sales and cash for dividend payments in cash, the bank said, adding that their choice of foreign currency deposits reflected dollar expectations. rugged American.

Savings deposits held by foreign investors jumped 13.5% to NT$259 billion, indicating that foreign stock market players have not completely exited the local stock exchange, but are waiting for an opportunity to return, did he declare.

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