TOKYO: Japan’s cash in circulation and bank deposits both touched new highs in June, according to statistics released on Friday (Jul 9), as consumers and businesses continued to save amid concerns about the economic impact of the COVID-19 outbreak. The report shows how Japan is trailing behind other major countries in recovering from the pandemic’s impact, with the government’s announcement of further state-of-emergency restrictions in Tokyo likely to exacerbate already low consumption.
According to Bank of Japan data, Japan’s M3 money supply – or currency in circulation and deposits at financial institutions – increased by 5.2 percent in June from a year earlier to a new high of 1.52 quadrillion (US$13.84 trillion).
The growth came after a 6.8% gain in May and was the slowest since May of previous year, according to the data.
The decline was partly due to the base effect of significant increases last year, when the pandemic’s first impact caused businesses to stockpile cash.
Bank deposits increased 9.3% year over year in June, the slowest pace since April last year, albeit the overall balance – at 863.5 trillion – was the second largest on record, according to the data./n
