Money Supply Reached Rp759.9 Trillion in October 2021

Based on Bank Indonesia (BI) data, the amount of currency in circulation reached Rp 854.28 trillion in October 2021. This comprised Rp 759.9 trillion in circulation among the public. This figure grew by 1.51% from the previous month and increased by 7.36% compared to the same month of the previous year.

Meanwhile, currency in circulation within the banking sector reached Rp 94.36 trillion in October 2021. This value grew by 1.34% compared to the previous month, but decreased by 4.54% compared to the same month of the previous year. The monthly average currency outflow over one year reached Rp 48.05 trillion.

The currency in circulation among the public represented only 12.6% of total third-party funds (DPK) and only 9.24% of household consumption at current prices.

In its public presentation, BI stated that the very loose liquidity condition was driven by accommodative monetary policy and synergy between the central bank and the government in supporting national economic recovery.

BI has injected liquidity (quantitative easing) into the banking sector totaling Rp 141.19 trillion throughout this year until December 14, 2021.

Furthermore, BI also purchased Government Securities (SBN) worth Rp 201.32 trillion to finance the 2021 State Budget (APBN). This comprised Rp 143.32 trillion in the primary market and Rp 58 trillion in private placement in November 2021.