Increasing Money Supply

The money supply in August this year surpassed 2.37 quadrillion won (US$2.13 trillion).
The money supply in August this year surpassed 2.37 quadrillion won (US$2.13 trillion).

 

A steady increase in the money supply in the money market has reached 2.37 quadrillion won (US$2.13 trillion). The growth rate rebounded in one month.

According to the report on the money supply and liquidity in August in 2016 released by the Bank of Korea on Oct. 12, M2 (in terms of average balance) means the money supply in August swelled 7.2 percent year on year to 2.377 quadrillion won (US$2.13 trillion) in August. M2 rebounded in one month after inking a drop of 6.9 percent in July. M2 is a measure of the money supply that includes all elements of M1 as well as "near money." M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds and other time deposits. It can be quickly converted into cash.  

“Companies’ settlement funds fell due to the payment of value-added taxes in July and money re-flew into MMFs, increasing cash in trust a great deal,” said Choi Yeong-yeop, deputy director of the Financial Statistics Team at the Bank of Korea. “The growth of money supply has been maintained for several recent months compared to the 90 percent level in the past. So, it seems that the growth of money supply is being stabilized."

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