Ahead Of Ramadan, Bank Indonesia Says The Amount Of Money In Circulation Is Increasing At IDR 7.672 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that the money supply in a broad sense (M2) in February 2022 was recorded at IDR 7.672.4 trillion. The book increased 12.5 percent on an annual basis (year-on-year/yoy).

Head of the BI Communications Department Erwin Haryono said the growth remained relatively strong from the previous month or January 2022, which was 12.8 percent yoy.

"Economic liquidity or money supply in a broad sense (M2) in February 2022 will continue to grow positively," he said in an official statement today, Thursday, March 24.

According to Erwin, this development was mainly influenced by the growth of money supply in the narrow sense or M1 of 18.3 percent yoy and quasi money of 5.9 percent yoy.

"The development of M2 in February 2022 is in line with the continued acceleration of credit distribution amidst the slowing expansion of government finances and net foreign assets," he said.

Furthermore, Erwin explained that credit disbursement grew by 5.9 percent yoy, an increase compared to the previous month's 5.4 percent.

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 or slowed down from 1.8 percent yoy in the previous month.

According to VOI records, the central bank itself has prepared a cash debt of IDR 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.