Money Supply in the economy broadens by 16% YoY in October

December 16, 2020 (MLN): The total money supply circulating within the economy in October 2020 has been recorded at around Rs.25.16 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.25 trillion while until the corresponding month of last year, the figure was Rs.21.75 trillion. This means that money supply has increased 16% over the year and remained almost same over the month.

Having broken down the overall money supply in broad categories, the SBP data shows that a total of Rs.6.126 trillion were circulated as notes while Rs.11.189 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 855 billion or 16% over the year.

Apart from this, other deposits constituted Rs.3.48 trillion in Oct’20, up by 15%YoY. Other deposits represent all claims other than transferable deposits in national or foreign currency that are represented by evidence of deposits.

Meanwhile, coins circulated jumped from Rs. 8.57 billion in Oct’19 to Rs. 8.9 billion in Oct 2020. Whereas, on monthly basis, it increased from Rs 8.84 billion.

Furthermore, Rs.275.84 billion worth of deposits were held with post offices while National Saving Schemes held Rs.4.076 trillion, marking a growth of 8% YoY from Rs.3.77 trillion.

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