MANILA — Domestic liquidity, or the amount of money circulating in the economy, grew by 7.3 percent year-on-year to about ₱18.9 trillion in September, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

The latest growth rate was faster than the 6.6 percent increase recorded in August. After seasonal adjustments, M3—the broadest measure of money supply—rose by 1.2 percent month-on-month in September.

M3 includes currency in circulation, bank deposits, and other financial assets easily convertible to cash.

Claims on the domestic sector, which cover liabilities of private and government entities to depository corporations, grew by 10.3 percent year-on-year in September from 9.8 percent in August.

Claims on the private sector expanded by 10.3 percent during the month, slightly lower than the 11.1 percent increase in August, reflecting continued growth in bank lending to non-financial corporations and households.

Meanwhile, net claims on the central government climbed by 10.0 percent from 6.1 percent in the previous month, mainly due to higher government borrowings.

Net foreign assets (NFA) in peso terms also increased by 3.3 percent year-on-year in September, following a 4.8 percent rise in August. The BSP’s NFA slightly declined by 0.1 percent, while banks’ NFA rose due to larger holdings of foreign currency-denominated debt instruments.

The BSP said it will continue to ensure that domestic liquidity conditions remain consistent with its price and financial stability objectives.