The Amount Of Money Circulating In The Beginning Of Ramadan Is IDR 8,293 Trillion, What's Up BI?

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that in March 2023 the amount of money circulating in a broad sense (M2) was IDR 8,293.6 trillion.

Head of the BI Communication Department Erwin Haryono said the figure. The development was driven by the narrow money supply (M1) growth of 4.8 percent on an annual basis (year on year/yoy) and quasi money of 8.0 percent.

"Economic liquidity or money circulating in a broad sense or M2 in March 2023 continues to grow positively," he said in a press statement released today Thursday, April 27.

Erwin explained that the development of M2 last month was mainly influenced by the development of lending and net bills to the central government (puss).

He said, March 2023 lending grew by 9.8 percent yoy, after growing 10.4 percent in the previous month in line with productive and consumptive credit growth.

Meanwhile, net bills to the library contracted by 25.7 percent yoy, after contracting by 19.6 percent yoy in February 2023.

"On the other hand, net foreign assets grew by 9.9 percent year on year or higher than the previous month which grew 7.0 percent year on year," said Erwin.

VOI noted that the total money in circulation in March 2023 amounting to Rp8,293.6 trillion turned out to be less than in February 2023 which amounted to Rp8,300 trillion. This means that the liquidity of the economy or money in circulation actually shrank at the beginning of Ramadan this year.

Meanwhile, this condition is in line with Bank Indonesia's policy of setting interest rates at the top level to control/reducing inflation by absorbing liquidity in the market.