Broad money rose 19.2%. At end-August, broad money (M2) stood at RMB68.75 trillion, increasing 19.2% year on year, up 1.6 percentage points from the previous month but down 9.3 percentage points from the same period last year. Narrow money (M1) registered RMB24.43 trillion, rising 21.9% year on year, down 1.0 percentage point from the previous month and 5.8 percentage points from the same period last year. Cash in circulation (M0) grew 16.0% year on year to RMB3.99 trillion. Net cash injection in the month registered RMB38 billion, up RMB21.3 billion year on year.
RMB and foreign currency loans rose RMB581.2 billion, with the former increasing RMB545.2 billion and the latter falling USD3.2 billion. At end-August, outstanding RMB and foreign currency loans totaled RMB48.47 trillion, up 18.9% year on year. In August, RMB and foreign currency loans grew RMB581.2 billion, up RMB39.7 billion year on year. Outstanding RMB loans reached RMB45.68 trillion, up 18.6% year on year, 0.2 percentage points higher than end-July but 15.5 percentage points lower than the same period last year. RMB loans increased RMB545.2 billion in the month, up RMB134.8 billion year on year. By sector, loans to households rose RMB201 billion, with short-term loans and long and medium-term loans increasing RMB89.6 billion and 111.4 billion respectively; loans to enterprises and other sectors grew RMB343.6 billion, with short-term loans and long and medium-term loans rising RMB96.5 billion and 253 billion respectively and bill financing falling RMB20.5 billion. Outstanding foreign currency loans registered USD409.3 billion, up 25.7% year on year. Foreign currency loans rose USD3.2 billion in the month.
RMB and foreign currency deposits increased RMB1.12 trillion, with the former rising RMB1.08 trillion and the latter USD5.8 billion. At end-August, outstanding RMB and foreign currency deposits totaled RMB70.15 trillion, up 19.3% year on year. In August, RMB and foreign currency deposits rose RMB1.12 trillion, up RMB774.8 billion year on year. Outstanding RMB deposits increased 19.6% year on year to RMB68.65 trillion, up 1.1 percentage points from the previous month but down 7.9 percentage points from a year earlier. RMB deposits grew RMB1.08 trillion in the month, up RMB720.6 billion year on year. In breakdown, household deposits, deposits of enterprises and fiscal deposits increased RMB194 billion, 496.5 billion and 100.6 billion respectively. Outstanding foreign currency deposits grew 6.6% year on year to USD220.1 billion. Foreign currency deposits rose USD5.8 billion in the month.
RMB transactions in the interbank market were brisk and market rates went down. In August 2010, RMB transactions in the interbank market amounted to RMB20.94 trillion. The average daily turnover posted RMB951.8 billion, rising 68.8% year on year.
In August, the monthly weighted average interbank lending rate stood at 1.62%, down 0.05 percentage points from the previous month. The monthly weighted average interest rate on bond pledged repo registered 1.66%, down 0.02 percentage points month on month.
