What is Money Supply?

Draw from the glossary on the Educational Resources page. You have three directly relevant definitions to use:

Narrow Money

the total quantity of money in a country's economy at a particular time

Narrow Money

notes and coins held by the public plus money on demand deposits at the Central Bank

Quasi Money

total of time deposits and savings deposits

Excess Liquidity

liquidity that banks possess above the minimum prescribed by CBSI

Bank Liquidity

total cash held by banks not used for investment or other transactions

Private Sector Credit

value of borrowings by private companies and individuals

Why does money supply matter?

Content

The level of money supply in an economy is closely linked to inflation and economic growth. When money supply grows faster than the economy, it can lead to rising prices. CBSI monitors money supply as part of its primary objective to maintain price stability and sustain the value of the Solomon Dollar.

Monthly Economic Bulletin

Read the latest Monthly Economic Bulletin for money supply data and key economic indicators.