According to statistics released today by the Monetary Authority of Macao, on a monthly basis, money supply M2 continued to grow in July. Total deposits rose while external loans decreased, the overall loan-to-deposit ratio dropped from a month earlier. Money supply Currency in circulation grew 1.3% whereas demand deposits decreased slightly by 0.2%. M1 thus stayed flat when compared with the previous month. Meanwhile, quasi-monetary liabilities rose 3.2%. The sum of these two items, i.e. M2, increased 2.7% to MOP228.3 billion. On an annual basis, M1 and M2 rose 19.8% and 9.5% respectively. The share of Pataca (MOP) in M2 stood at 28.1%, up 0.6 percentage points over a month ago or 0.3 percentage points from a year earlier. Concurrently, the share of Hong Kong Dollar (HKD) in M2 was 54.5%, down 0.4 percentage points month-to-month or remained unchanged year-on-year. Deposits Resident deposits grew 2.8% from the previous month to MOP223.2 billion. Of which, MOP deposits, HKD deposits and other foreign currency deposits increased at respective rates of 5.4%, 2.1% and 1.2%. Concurrently, non-resident deposits rose 2.0% to MOP72.2 billion and public sector deposits with the banking sector grew significantly by 25.6% to MOP18.9 billion. As a result, total deposits with the banking sector grew 3.7% from the previous month to MOP314.3 billion. The shares of MOP and HKD in total deposits were 23.5% and 46.6% respectively. Loans Domestic loans to the private sector expanded 4.3% in July to MOP116.8 billion. Among which, MOP35.7 billion was MOP-denominated and MOP73.7 billion was denominated in HKD, representing 30.5% and 63.1% of the total respectively. Meanwhile, external loans decreased 3.2% to MOP108.1 billion; of which, loans denominated in MOP and HKD accounted for 0.8% (MOP0.9 billion) and 42.1% (MOP45.5 billion) of the total respectively. Loan-to-deposit ratios As the growth pace of domestic loans to the private sector is similar to that of resident deposits (including public sector deposits), the loan-to-deposit ratio for the resident sector at end-July 2010 remained virtually unchanged from a month ago at 48.2%. The ratio for both the resident and non-resident sectors was 71.5%, down 2.3 percentage points from the previous month.
