South korea: South Korea's money supply has seen an upward trend for the third month in a row in June, driven by a surge in funds associated with a robust stock market, as revealed by data from the central bank on Wednesday. The nation's M2, which is a crucial metric for gauging money supply, reached 4,307.5 trillion won (approximately US$3.11 trillion) in June, marking a 0.6 percent rise from the previous month based on preliminary figures from the Bank of Korea (BOK).
According to Yonhap News Agency, the M2 has been on an upward trajectory since April. This measure of the money supply encompasses cash, demand deposits, and other financial instruments that can be easily converted. The observed monthly increase was primarily due to a 9.5 trillion won rise in time deposits with maturities under two years alongside an 8.2 trillion won growth in money trusts. Additionally, beneficiary certificates witnessed an 8.1 trillion won increase on a month-to-month basis.
Despite these gains, market-based products saw a decline of 1.4 trillion won. A BOK official noted, "Equity-type securities increased markedly amid the stock market recovery, while money trusts continued to grow, led by increased inflows of funds." The benchmark Korea Composite Stock Price Index (KOSPI) contributed to this trend by recording its largest monthly gain in over four years, with a rise of 13.86 percent in June, as per data from Yonhap Infomax, the financial data arm of Yonhap News Agency.