Cash circulating up 3% to ¥80 trillion

JIJI

The average daily balance of cash in circulation in the country last month increased 3.1 percent from a year earlier to ¥79.7 trillion, logging the biggest rise in six years and 11 months, the Bank of Japan said Tuesday.

A large portion of cash withdrawn around the turn of the year remained in circulation without being returned to the banking system partly because interest rates remain very low, a BOJ official explained.

The balance of M1, or cash in circulation plus demand deposits at all deposit-taking institutions, stood at ¥546.5 trillion in January, up 3.5 percent. The balance of M3, a broader measure that also includes time deposits and certificates of deposit, was up 2.3 percent at ¥1.1384 quadrillion. The broadest liquidity measure, which also covers investment trust funds and government securities, stood at ¥1.4757 quadrillion, up 1.4 percent.

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