Jakarta (Indonesia Window) – Indonesia’s money supply in a broad sense (M2) or economic liquidity reached 7,572.2 trillion rupiahs (some 533.8 billion U.S. dollars) in November 2021, or grew 11 percent compared to the same period in the previous year (year on year/yoy), according to Indonesia’s central bank, Bank Indonesia (BI).

The annual growth is also reported to be higher than the increase in October 2021 which was recorded at 10.5 percent (yoy).

"The M2 growth in November 2021 is influenced by credit distribution and net foreign assets," BI's Chief Executive Director of Communications Erwin Haryono said in an official statement here on Thursday (Dec. 23).

On the other hand, the increase in M2 was also driven by the acceleration of money supply in the narrow sense (M1) by 14.7 percent (yoy) and quasi money by 7 percent (yoy).

The growth in M1 was mainly due to the growth in the circulation of currency and rupiah demand deposits, while quasi-money was supported by increases in time deposits and foreign currency demand deposits.

Reporting by Indonesia Window