The broad money supply M3 in Turkey grew annually by 28.2% in December 2019
According to the news published by the Central Bank of Republic of Turkey, the broad money supply M3 grew annually by 28.2% in December 2019, following the 25.7-percent yearon-year growth in November 2019. The annual growth rate of M1, the narrowest measure of money supply, increased from 38.1% in November to 41.6% in December 2019.
The annual rate of increase in loans granted by the monetary sector to households is 15.6% in December 2019. Meanwhile, the loans extended to non-financial corporations increased 5.9% in November 2019 compared to previous year, while it increased year on year 8.7% in December 2019.
An analysis of the contribution of broad money components to the annual growth in money supply reveals that the largest contribution came from time deposits, followed by demand deposits. The increase in time deposits contributed 19% to the 28.2% annual growth in the broad money M3 in December 2019 while demand deposits added 6.4%. Other components had a limited contribution to the growth.
The growth in M3 is reflected in counterparts as an increase in claims on the private sector, the general government, non-bank financial institutions and net foreign assets by 28.9%, 5%, 0.9% and 2.1% respectively. On the other hand, other items (net) had a reducing effect by 8.7%.
Source: Central Bank of Republic of Turkey / link: https://www.tcmb.gov.tr/wps/wcm/connect/533c4d4d-be2b-4086-b0c1-74d33a22d848/Monetary+Developments.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-533c4d4d-be2b-4086-b0c1-74d33a22d848-m.XnmDT
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
