The Central Bank of the Philippines (BSP) released preliminary September data showing domestic liquidity (M3) grew 7.3% year on year to around PHP 18.9 trillion, accelerating from 6.6% in August. On a seasonally adjusted basis, M3 increased 1.2% month on month. The expansion was driven by faster growth in claims on the domestic sector, which rose 10.3% year on year (from 9.8% in August). Claims on the private sector grew 10.3% (from 11.1%), reflecting continued growth in bank lending to non-financial private corporations and households, while net claims on the central government increased 10.0% (from 6.1%) amid higher borrowings. Net foreign assets in peso terms rose 3.3% year on year (from 4.8%), with the BSP’s net foreign assets down 0.1% and banks’ net foreign assets higher mainly due to larger holdings of foreign currency-denominated debt instruments.
Central Bank of the Philippines 2025-11-05
Central Bank of the Philippines reports September domestic liquidity rises 7.3% year on year to PHP 18.9 trillion
The Central Bank of the Philippines reported a 7.3% year-on-year increase in domestic liquidity (M3) to approximately PHP 18.9 trillion in September, up from 6.6% in August. This growth was driven by a 10.3% rise in claims on the domestic sector and a 10.0% increase in net claims on the central government. Net foreign assets in peso terms grew 3.3% year on year, with banks' holdings of foreign currency-denominated debt instruments contributing.