Domestic liquidity, or M3, rose by 5.5% in May 2025. M3 measures the total money supply in the economy, including circulating cash, bank deposits, and other financial assets that can be easily converted to cash.
According to data from the Bangko Sentral ng Pilipinas (BSP), domestic liquidity reached approximately ₱18.4 trillion, growing by 0.7% from the previous month.
Total loans to the domestic sector, which includes both the private and public sectors, increased by 10.7%, slightly lower than the 10.9% growth recorded in April.
Meanwhile, net claims on the government rose by 9.1% due to increased borrowing.
On the other hand, net foreign assets (NFA) decreased by 4.6% in peso terms, a larger decline compared to the 0.2% drop in April, attributed to the appreciation of the peso against the dollar.
The BSP assured that it will continue to balance the money supply to ensure price stability and the resilience of the financial system in the country.
