Taiwan M2 Money Supply Rises to New Highs

Taiwan’s M2 money supply rose 7.24% year-on-year to a record TWD 71,361 billion in September 2026, accelerating from 6.79% in the previous month. The faster expansion reflected higher annual growth in lending and investment, as well as the temporary repatriation of overseas financing funds by enterprises. On a monthly basis, M2 increased 0.97%, while average growth for the first nine months of the year stood at 6.69%. Meanwhile, lending and investment by all monetary institutions grew 9.79% year-on-year, up from 9.43% in August, driven primarily by increased claims on the private sector, public enterprises, and government debt. Including lending and investment by life insurers and adjusting for bad-debt write-offs transferred by monetary institutions, the broader measure rose 8.06%, accelerating from 7.69% in the previous month.

Taiwan’s M2 money supply increased 6.79% year-on-year to a fresh record of TWD 70,678 billion in August 2026, but growth eased from a 7.42% rise in the previous month. The slower growth was mainly due to weaker increases in foreign currency deposits and demand deposits. On a monthly basis, M2 rose 0.65%, while average M2 growth in the first eight months of the year stood at 6.62%. Meanwhile, lending and investment by all monetary institutions grew 9.43% year-on-year, accelerating from 9.08% in the previous month, mainly driven by stronger growth in claims on the private sector and public enterprises. Including lending and investment by life insurers and adjusting for bad-debt write-offs transferred by monetary institutions, the broader measure rose 7.69% year-on-year, up from 7.40% in the previous month.

Taiwan’s M2 money supply increased 7.42% year-on-year to TWD 70,225 billion in July 2026, slowing from an 8.13% rise in the previous month. The deceleration was mainly driven by net outflows of foreign capital. On a monthly basis, M2 edged down 0.09%, while average M2 growth in the first seven months of the year stood at 6.60%. Meanwhile, lending and investment by all monetary institutions grew 9.07% year-on-year, accelerating from 8.80% in June, driven mainly by stronger growth in claims on public enterprises and government debt. Including lending and investment by life insurers and adjusting for bad-debt write-offs transferred by monetary institutions, the broader measure rose 7.40% year-on-year, up from 7.33% in the previous month.