PH domestic liquidity up by 7% in December 2025

The Philippines' domestic liquidity continued to grow in December 2025, preliminary data released by the Bangko Sentral ng Pilipinas (BSP) showed.

Domestic liquidity, or the amount of money circulating in the economy, expanded by 7 percent year-on-year to ₱20.1 trillion in December, according to preliminary data..

Also known as M3, domestic liquidity's growth was slower in December than the 7.6-percent increase in November.

M3 remained broadly stable from November after adjusting for seasonal fluctuations,

M3 is a broad measure of money supply that includes currency in circulation, bank deposits, and other financial assets that are easily convertible to cash. 

As a driver of money supply, claims on the domestic sector, which includes private and government entities in the country, rose by 10.1 percent year-on-year in December from 10.6 percent in November. Claims on a sector represent that sector's liabilities to depository corporations.

As bank lending growth to non-financial private corporations and households slowed, claims on the private sector alone grew by 10.1 percent in December from 11.1 percent in the previous month.

Net claims on the central government increased by 10.8 percent in December from 11.0 percent in the previous month, driven mainly by its higher borrowings. 

"Net foreign assets (NFAs) in peso terms rose by 6.1 percent year-on-year in December from 4.4 percent in November. NFAs represent the difference between claims on nonresidents and liabilities to nonresidents of depository corporations," the BSP said.

NFAs of the BSP increased by 5.3 percent. Similarly, NFAs of banks grew primarily on account of larger holdings of foreign currency-denominated debt securities.

"The BSP will continue to ensure that domestic liquidity conditions remain consistent with its price and financial stability objectives," the central bank said.—LDF, GMA Integrated News