Ahead Of Ramadan, Bank Indonesia Says More And More Money In Circulation: Its Value Reached Rp7,672 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - Economic liquidity or money supply in a broad sense (M2) continues to grow. In February 2022, the value reached IDR 7,672.4 trillion.

According to the Head of the Communications Department of Bank Indonesia Erwin Haryono, the M2 position grew 12.5 percent (year on year/yoy).

"This development was mainly influenced by the growth of money supply in the narrow sense (M1) of 18.3 percent (yoy) and quasi money of 5.9 percent (yoy)," Erwin said in his statement, Thursday, March 24.

Erwin added that the development of M2 in February 2022 was in line with the continued acceleration of credit distribution amidst the slowing expansion of government finances and net foreign assets.

"In this period, lending grew by 5.9 percent (yoy), an increase compared to the previous month of 5.4 percent (yoy)," Erwin added.

Meanwhile, the government's financial expansion as reflected in net bills to the Central Government grew by 42.7 percent (yoy), lower than the 48.1 percent (yoy) growth in January 2022.

On the other hand, net foreign assets grew 1.4 percent (yoy), slower than the previous month's growth of 1.8 percent (yoy).

According to VOI records, the central bank itself has prepared a cash debt of Rp. 175.3 trillion to anticipate the increasing needs during the period of Ramadan and Eid in 2022. This amount is 13.4 percent more than last year's realization.

"We are ready to ensure the availability of cash in all regions of the Republic of Indonesia immediately before entering Ramadan, especially for areas outside Java," said BI Deputy Governor Aida S. Budiman some time ago.