Money supply edges up in April on rise in savings deposits: BOK

SEOUL, June 16 (Yonhap) -- South Korea's money supply inched up in April, mainly thanks to an increase in savings deposits amid a monetary easing cycle, central bank data showed Monday. The country's M2, a key gauge of the money supply, stood at 4,235.8 trillion won (US$3.1 trillion) in April, up 0.2 percent from a month earlier, according to the preliminary data from the Bank of Korea (BOK). The monthly tally had posted a decrease in March for the first time in 23 months, but made a turnaround just a month later. The M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments. The on-month gain came as regular savings deposits expanded 9.4 trillion won from the previous month as people rushed to deposit their funds before interest rates further go down. Investment funds also rose by 5.1 trillion won over the same period. On the other hand, demand deposits declined 5.3 trillion won and other liquid financial products dropped 3.9 trillion won. South Korea's liquidity aggregate, the broadest measure of money supply, went up 0.5 percent from a month earlier to stand at 7,276.9 trillion won in April, the data showed. An official checks banknotes at a Hana Bank branch in Seoul in this July 17, 2024, file photo. (Yonhap) nyway@yna.co.kr(END)