(MENAFN) South Korea's money supply registered its highest growth in four years in February as liquid money flowed into short-term financial instruments such as money market fund (MMF) on worries about the U.S Federal Reserve's tapering of its quantitative easing, Xinhuanet reported
South Korea's M2, or broad money, increased 1 percent in February last year, improving 0.4 percent from the previous month, according to the Bank of Korea (BOK). That was the fastest growth since February 2010 in which M2 posted a 1.4 percent increase
Floating money in the market flowed into financial products a maturity of less than two years on the back of concerns over the Fed's cutback in its monetary stimulus
The U.S central bank determined to reduce its monthly bond purchases by USD10 billion to USD65 billion in February after subscribing the same amount a month earlier. The Fed, balanced back the USD10 billion to USD55 billion worth bond last month
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