The annual growth of M1B and M2 money supply fell last month amid slowing growth in bank loans and investments, the central bank said yesterday.
M1B, a narrow measure of money supply in circulation, rose 7.44 percent from a year ago, down from a 7.6 percent increase in July, the central bank said.
The broader M2 monetary measurement — which includes M1B, time deposits, savings deposits, foreign currency deposits and mutual funds — increased 6.16 percent year-on-year last month, down from a 6.18 percent growth rate in July, data showed.
“Although the growth of M1B and M2 slowed last month, the capital momentum remained abundant,” Chen E-dawn (陳一端), deputy head of the bank’s economic research department, told a media briefing.
Foreign investors sold a net total of NT$191.35 billion (US$6.26 billion) in local shares last month and the outflow of net foreign capital totaled US$8.02 billion last month, Chen said.
However, foreign-held New Taiwan dollar deposits surged NT$22.2 billion to NT$282.4 billion from a month earlier, indicating that market liquidity was still healthy, she added.
Foreign currency deposits dropped to NT$2.48 trillion last month, after hitting a record high of NT$2.59 trillion in July, amid strong demand from firms paying dividends, Chen said.
Local listed companies paid NT$514 billion in dividends last month, up from a total of NT$215 billion a month ago. These companies are expected to pay another NT$170 billion in dividends this month, the bank said.
In the first eight months, the monetary aggregates M1B and M2 rose 8.4 percent and 6.01 percent respectively, according to the bank’s data.
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