Money in circulation grows in February 2020
JAKARTA – Liquidity of the economy or broad money circulation (M2) increased in February 2020. M2 position in February 2020 was recorded at Rp6,116.5 trillion or grew by 7.9% (yoy), higher than the previous month’s growth of 7.1 % (yoy). The accelerated growth of M2 was driven by an increase in all its components, both narrow money (M1), quasi money, and securities other than shares.
Narrow money (M1) increased, from 7.9% (yoy) in January 2020 to 8.6% (yoy) in February 2020, due to the growth in currency and demand deposits of rupiah. Quasi money in February 2020 also increased from 6.8% (yoy) in January 2020 to 7.5% (yoy) in February 2020. The increase also occurred in securities other than shares, from 31.8% in the previous month to 34, 7% (yoy) in February 2020.
Based on influencing factors, the increase in M2 in February 2020 was driven by the expansion of government financial operations. This is reflected in the increase in net bills to the Central Government, from 1.8% (yoy) in January 2020 to 11.9% (yoy) in February 2020.
Credit disbursement in February 2020 slowed down to 5.5% (yoy) compared to the previous month’s growth of 5.7% (yoy). Meanwhile, net foreign asset growth in February 2020 was 9.9% (yoy), relatively stable compared to the previous month’s growth. (LM)