M1 = Currency in Circulation + Demand Deposits
Currency in Circulation refers to the notes and coins issued by BNM less the amount held by the commercial banks and Islamic banks.
Demand Deposits refer to the current accounts (includes SPI current accounts) of the non-bank private sector and investment banks (prior to 2006, finance companies, merchant banks and discount houses) placed with the commercial banks and Islamic banks.
M2 = M1 + Narrow Quasi-Money
Narrow Quasi-Money = Savings Deposits + Fixed Deposits + NIDs + Repos + Foreign Currency Deposits
Narrow Quasi-Money refers to the sum of deposits/interest-bearing instruments (including SPI deposits and instruments) placed by the non-bank private sector and investment banks with the commercial banks and Islamic banks (excluding inter-placements among these banking institutions). Foreign currency deposits refer to the deposits of foreign currencies held by residents (non-bank) and foreign entities with the commercial banks and Islamic banks.
M3 = M2 + Deposits Placed with Other Banking Institutions
Deposits Placed with Other Banking Institutions refer to the sum of deposits/interest bearing instruments (including SPI deposits and instruments) placed by the non-bank private sector with investment banks (excluding inter-placements among banking institutions).
