Broad Money Supply M3 Grew by 41.1% Year-on-Year in September

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Broad Money Supply M3 Grew by 41.1% Year-on-Year in September

Forex - Broad money supply M3 grew by 41.1% year-on-year in October 2024, following a 42.3% increase in September 2024. According to the announcement by the Central Bank of the Republic of Turkey (CBRT), the annual growth rate of the narrowest money definition, M1, was 37.4% in the previous month, while it decreased to 34.2% in October.

The Bank stated: "The annual growth rate of loans provided by the monetary sector was 44.7% for households in September 2024 and increased to 45.3% in October 2024. Loans to non-financial organizations rose by 40.8% in September 2024 compared to the previous year, while the increase slowed to 38.1% in October 2024.

When examining the contribution of components of the broad money supply to the annual growth, it is observed that time deposits provided the largest contribution, followed by demand deposits.

The annual growth of 41.1% observed in broad money supply M3 in October 2024 was primarily influenced by the increase in time deposits, which accounted for 23.7%, followed by demand deposits at 12.3%, and contributions from other items remained limited. The monthly growth of 2.6% was driven by a 2.3% increase in time TL deposits, followed by a 0.8% increase in money market funds.

Broad money supply M3 increased by 459 billion TL compared to the previous month in October 2024. At the same time, M1 increased by 507 million TL, with an increase in demand foreign currency deposits and a decrease in demand TL deposits affecting this change.

The reflection of the annual growth in M3 on its counterpart items was as follows: 33% from the private sector, 8.6% from general government, 1.5% from non-bank financial institutions, and 3.5% from net foreign assets. Conversely, other items contributed to a net decrease of 5.5%.

The reflection of the monthly growth in M3 on its counterpart items included 2.1% from the private sector, 0.5% from general government, 0.1% from non-bank financial institutions, and 0.2% from net foreign assets. On the other hand, other items contributed to a net decrease of 0.3%.