By Crystal Hsu / Staff Reporter
Money supply in the country, as measured by M1B and M2, grew last month at the weakest rates in 18 and 15 months respectively, as lending and investment declined from a high base year. latest, the central bank said yesterday.
The narrow M1B measure, which refers to cash and cash equivalents, rose 11.08% year-on-year, outpacing the 7.67% rise in the broad M2 reading, suggesting liquidity for Equity investment remains ready and plentiful, the bank said.
Securities account balances hit a record 3.19 trillion Taiwan dollars ($111.53 billion) as retail investors increased their holdings of local equities, encouraged by price corrections induced by rate hikes of the US Federal Reserve and the war in Ukraine, the central bank said.
TAIEX topped the 18,000 mark last month, while swinging wildly like exchanges elsewhere, he said, adding that investors appeared cautious judging by the relatively low daily trading volume. he declared.
Broader M2 – which includes M1B, time deposits, term savings deposits, foreign exchange deposits and mutual funds – increased by 7.67% compared to the previous year, supporting potential GDP growth of 4% for the year, the central bank said.
Savings deposits from foreigners rose from NT$17.8 billion to NT$214.8 billion as investors search for opportunities, he added.
Foreign funds are divided into investment banks, which tend to focus on short-term gains, and mutual funds, which seek long-term deployments, resulting in a “standoff,” a said the central bank.
Exports are expected to remain robust this year, which would bolster foreign savings deposits, he said.
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