SEOUL, June 7 (Xinhua) -- South Korea's money supply grew 0.6 percent in April from a month earlier as households deposited more money in bank accounts amid growing concerns over Europe's debt crisis, the central bank said Thursday.
The country's M2, so-called broad money, reached a seasonally- adjusted 1,778.3 trillion won (1.52 trillion U.S. dollars) in April, up 0.6 percent from a month earlier, according to the Bank of Korea (BOK). From a year before, the seasonally-unadjusted M2 expanded 5.5 percent, up from a 5.7 percent on-year expansion tallied in March.
The April figure came after households increased their time deposits with maturity of less than 2 years due to growing demand for safe assets caused by the resurfacing European debt crisis.
The BOK began releasing the seasonally-adjusted figures on a monthly basis starting January in a bid to better reflect short- term changes in monetary conditions. In addition, the ank offered the seasonally-unadjusted data on a yearly basis to reflect the long-term monetary trend.
The M1, dubbed as narrow money, reached a seasonally-adjusted 437.3 trillion won in April, up 0.2 percent from a month before due to a rise transferable savings deposit such as money market deposit account (MMDA), according to the BOK. From a year earlier, the seasonally-unadjusted M1 advanced 2.8 percent.
The M1 covers currency in circulation and demand deposits equivalent to cash, while the M2 adds transferable savings deposit, MMF and financial products that mature in less than tow years such as deposits and bonds to M1.
Liquidity of financial institutions, also called Lf, grew 0.7 percent in April from the previous month. From the same month of last year, the Lf surged 8.6 percent.
The on-month growth of liquidity aggregate, the broadest measure of money supply, logged 0.2 percent in April, with the on- year figure reaching 8.6 percent.
The Lf covers financial products with a maturity of more than two years and liquidity at insurers and brokerage houses along with the M2, while the liquidity aggregate adds state and corporate bonds to the Lf.
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