Macao's Broad Money Supply Declines in February

(MENAFN) Macao's monetary watchdog has announced that the special administrative region's broad money supply fell by 1.1 percent month on month to 716.1 billion patacas (about 88.5 billion U.S. dollars) in February. The decline was attributed to a drop in currency in circulation and demand deposits, which fell by 3.3 percent and 4.1 percent, respectively. As a result, M1 decreased by 3.9 percent from the previous month.

Quasi-monetary liabilities also fell by 0.8 percent. The sum of these two items, broad money supply or M2, declined by 1.1 percent to 716.1 billion patacas. However, on an annual basis, M2 increased by 4.0 percent, while M1 dropped by 4.4 percent.

The shares of pataca, Hong Kong dollar, renminbi, and U.S. dollar in M2 were 35.7 percent, 44.3 percent, 7.9 percent, and 10.0 percent, respectively. According to official data, resident deposits decreased by 1.0 percent from the preceding month to 695.0 billion patacas, while non-resident deposits dropped by 11.8 percent to 289.4 billion patacas.

In contrast, public sector deposits with the banking sector increased by 0.8 percent to 230.0 billion patacas. As a result, total deposits in the banking sector fell by 3.5 percent from the previous month to 1,214.4 billion patacas. The decline in Macao's broad money supply in February reflects the ongoing challenges facing the global economy, as well as the impact of the COVID-19 pandemic on financial markets and consumer behavior. Despite this, the region remains an important player in the global financial system and is likely to continue to play a key role in shaping the future of the global economy.

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