Money Supply Grew 12.9% in January 2022

Bank Indonesia (BI) recorded that the economic liquidity or broad money supply (M2) reached Rp7,643.4 trillion in January 2022. This figure increased by 12.9% compared to January 2021 (year-on-year/yoy).

However, BI revealed that the growth of money supply in January 2022 was lower than in December 2021, which was 13.9% (yoy).

This growth was influenced by the growth of narrow money supply (M1) of 17.1% (yoy) and quasi money of 8.2% (yoy).

Furthermore, the central bank noted that the growth of M2 in January 2022 was influenced by government financial expansion, accelerated credit disbursement, and a slowdown in net foreign assets.

Government financial expansion is reflected in net claims on the central government, which grew by 48.1% (yoy), an increase compared to the growth in December 2021 of 37.7% (yoy).

Similarly, credit disbursement grew by 5.5% (yoy), an increase compared to the previous month's growth of 4.9% (yoy).

Meanwhile, net foreign assets grew by 1.8% (yoy) in line with the continued high level of foreign exchange reserves, but slowed compared to the previous month.