Why is this important
The growth of the money supply reflects the expansion of lending and increased liquidity in the economy. The accelerated growth of deposits in sums (+34% for 9 months) compared to foreign currency deposits (+16%) confirms the trend towards de-dollarization and strengthening confidence in the national currency.
What happened
- Money supply M2 increased by 9.4 trillion soums and by 56.7 trillion soums since the beginning of the year, reaching 333.7 trillion soums;
- The money supply in national currency increased by 50 trillion soums (+22.7%) since the beginning of the year to 270.1 trillion soums;
- Cash in circulation increased by 11.7 trillion soums (+22%) since the beginning of the year, exceeding 65 trillion soums;
- In September, the money supply in sums increased by 8.5 trillion, in cash — by 3.3 trillion.
Deposit dynamics
- Demand deposits in soums increased by 1.2 trillion soums to 61.9 trillion soums;
- Foreign currency deposits increased by 0.9 trillion soums to 63.6 trillion soums;
- Since the beginning of the year, deposits in national currency have grown by 34%, in foreign currency — by 16%;
- Other deposits in soums increased almost one and a half times (+47.5 trillion soums).
Context
The growth of the money supply is linked to the expansion of lending to the economy and the increase in remittances from labor migrants. The Central Bank is pursuing a policy of maintaining liquidity in the context of economic growth.
The accelerated growth of deposits in soums indicates a change in the preferences of the population and businesses in favor of the national currency against the backdrop of the strengthening of the soum by 6.4% since the beginning of the year. The 22% increase in cash can be attributed to seasonal factors and increased consumer activity.
The money supply M2 includes cash outside the banking system, as well as demand deposits, savings and term deposits in national and foreign currencies of the private sector, households, government and financial organizations.
