China's money supply growth dropped in August, falling for the third consecutive month, as the government's tightening measures took effect.
The broad measure of money supply, M2, which covers cash in circulation plus all deposits, reached 44.9 trillion yuan (6.55 trillion U.S. dollars) through August, up 16 percent from the period a year earlier, the People's Bank of China (PBOC) said on Friday.
The increase was 0.35 percentage points lower than the previous month.
Through August, the narrow measure of money supply, M1, was up 11.48 percent to 15.7 trillion yuan, according to the central bank.
Outstanding local currency loans expanded 14.29 percent to 29.3trillion yuan, while those in foreign currencies gained 37.84 percent to 271.7 billion U.S. dollars.
The slowing growth indicated the central government's tightening monetary policy had bore fruit, said Zhang Liqun, a researcher with the Development and Research Center of the State Council.
Zhuang Jian, Asian Development Bank senior economist, echoed Zhang's comment, adding the M2 and loan figures had entered a "rational zone after adjustments."
As of Aug. 31, household local-currency deposits were up 19.28 percent to 45 trillion yuan, while foreign-currency deposits grew 7.17 percent to 174.3 billion U.S. dollars, the central bank said.
Source:Xinhua
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