Seoul: South Korea's money supply continued to rise in July from a month earlier, driven by increases in short-term deposits and money trusts, central bank data showed Tuesday. The country's M2, a key gauge of the money supply, stood at an average of 4,225.6 trillion won (US$3.51 trillion) in July, up 0.3 percent, or 12.7 trillion won, from a month earlier, according to preliminary data from the Bank of Korea (BOK).

According to Yonhap News Agency, the figure has risen steadily since November. M2 is a measure of the money supply that includes cash, demand deposits, and other easily convertible financial instruments. The BOK reported that short-term deposits and money trusts with maturities of less than two years increased in July.

By sector, liquidity held by nonfinancial corporations increased by 20.6 trillion won, while liquidity held by households and nonprofit organizations fell by 11.6 trillion won, the data showed. Liquidity held by financial institutions declined by 5.7 trillion won.