Jakarta (Indonesia Window) – Indonesia’s money supply in a broad sense (M2) in March 2022 grew 13.3 percent compared to that in the same period last year (year-on-year/yoy), to 7,810.9 trillion rupiahs (some 541.2 U.S. dollars), according to Bank Indonesia (BI).

The money supply growth in March 2022 was higher than that in February 2022 of 12.8 percent (yoy).

Chief Executive Director of BI’s Communications Department Erwin Haryono in an official statement here on Friday (Apr. 22) said the development of M2 was influenced by the growth of money supply in the narrow sense (M1) of 18.7 percent (yoy) and quasi money of 6.9 percent (yoy).

The M1 growth was higher than the previous month's 18.3 percent (yoy) growth, due to increasing circulation of currency and rupiah savings, which can be withdrawn at any time.

Currency circulation in March 2022 was recorded at 792.6 trillion rupiahs (about 54.9 billion dollars) or grew by 14.5 percent (yoy), higher than the previous month's 14.0 percent (yoy), driven by increased community activity due to a decrease in the number of COVID-19 cases.

Erwin noted that rupiah savings that could be withdrawn at any time reached 2,097.4 trillion rupiahs (some 145.3 billion dollars) at the report position or grew 14.0 percent (yoy) compared to February 2022.

Meanwhile, the M2 growth in March 2022 was mainly influenced by lending, which in March 2022 grew 6.4 percent (yoy), an increase compared to the previous month of 6.1 percent (yoy).

The expansion of government finances slowed, reflected in the declining growth in net bills to the central government to 27.9 percent (yoy), lower than the growth in February 2022 of 42.7 percent (yoy).

On the other hand, net foreign assets contracted 1.5 percent (yoy), in contrast to the previous month's positive growth of 1.4 percent (yoy).

Reporting by Indonesia Window