Annual growth in M1B and M2 money supply surged last month, as stronger demand for funds during the Lunar New Year holiday in February boosted the circulation of money, the central bank said yesterday.
M1B, a narrow measure of the money in circulation including currency and passbook savings deposits, rose 6.03 percent from a year ago, up from a 5.66 percent year-on-year increase in February, its highest level since September 2011, the bank said in its monthly report.
Chen E-dawn (陳一端), deputy head of the bank’s economic research department, attributed the rise in growth of M1B to higher growth in bank loans and investments.
The strong seasonal demand for funds during the Lunar New Year holidays was the other factor, making circulation of money in the economy higher than usual, Chen added.
The broader M2 monetary measurement — which includes M1B, time deposits, foreign currency deposits and mutual funds — increased 3.78 percent year-on-year last month, up from a 3.53 percent growth rate in February, data showed.
For the first three months of the year, the average annual growth rates of M1B and M2 were 5.22 percent and 3.43 percent respectively, statistics showed.