JAKARTA - Liquidity of the economy or broad money (M2) increased in March 2020. M2's position was recorded at Rp 6,440.5 trillion in March 2020 or grew 12.1% (yoy), higher than the previous month's growth of 7, 9% (yoy). The accelerated growth of M2 was driven by an increase in all its components, both narrow money (M1), quasi money, and securities other than shares.
Narrow money (M1) increased, from 8.6% (yoy) in February 2020 to 15.4% (yoy) in March 2020, due to the growth of the rupiah demand deposit. Meanwhile, the growth of quasi money in March 2020 increased, from 7.5% (yoy) in February 2020 to 10.8% (yoy). The increase also occurred in the growth of securities other than shares, from 34.7% (yoy) in the previous month to 44.6% (yoy) in March 2020.
Based on influencing factors, the increase in M2 in March 2020 was supported by increase in net foreign assets, expansion of government financial operations, and the credit realization. The growth of net foreign assets in March 2020 was 13.9% (yoy), higher than the growth in February 2020 of 9.9% (yoy).
The growth of net bills to the Central Government increased, from 11.9% (yoy) in February 2020 to 14.5% (yoy) in March 2020. In addition, lending in March 2020 increased by 7.2% (yoy), higher than the previous month's growth of 5.5% (yoy). (LM)