Money Supply in June’20 expands by 17% YoY

August 12, 2020 (MLN): The total money supply circulating within the economy in June 2020 has been recorded at around Rs.24.96 trillion, according to provisional accounts on Monetary Aggregates for the month, maintained by the State Bank of Pakistan.

The money circulating within the economy until last month was Rs.24.196 trillion while until the corresponding month of last year, the figure was Rs.21.4 trillion. This means that money supply has increased 17% over the year and only 3% over the month.

Having broken down the overall money supply in broad categories, the SBP data shows that a total of Rs.6.127 trillion were circulated as notes while Rs.11.078 trillion accounted for transferable deposits which comprise all deposits that are exchangeable on demand at par without penalty/restriction.

The amount circulated as notes which has been high in Pakistan relative to other developed and emerging economies, rose by over Rs 1.19 trillion or 24% over the year.

Apart from this, other deposits constituted Rs.3.426 trillion in June’20, up by 13%, YoY. Other deposits represent all claims other than transferable deposits in national or foreign currency that are represented by evidence of deposits. On the other hand, coins circulated declined from Rs. 9.12 billion in May 2020 to Rs. 8.55 billion in June 2020. Whereas on yearly basis, it increased from Rs 8.43 billion.

Furthermore, Rs.270.8 billion worth of deposits were held with post offices while National Saving Schemes held Rs.4.055 trillion, marking a growth of 10% YoY from Rs.3.7 trillion.

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