Money supply reaches Rs39.45tr as of Aug

October 01, 2024 (MLN): The total money supply circulating within the economy till August 2024 has been recorded at Rs39.45 trillion, according to the State Bank of Pakistan (SBP) data.

The money circulating within the economy until July 2024 was Rs39.2tr whereas, in the month of August of last year, the figure was Rs34.44tr. This means that the money supply has risen by 0.64% MoM while, on a year-on-year basis, it has jumped by 14.55% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.89tr were circulated as notes while Rs21.49tr accounted for transferable deposits which comprise all deposits that are exchangeable on demand at par without penalty/restriction.

The currency circulated as notes which have been high in Pakistan relative to other developed and emerging economies because of the high informal economy fell by over 0.64% MoM while rising by 6.92% over the year.

Apart from this, other deposits constituted Rs5.93tr in August 2024, down 0.54% MoM while up 13.24% YoY.

Other deposits represent all claims other than transferable deposits in national or foreign currency that are represented by evidence of deposits.

Meanwhile, coins in circulation fell to Rs9.04 billion in August 2024 compared to Rs9.45bn in the previous month and Rs9.11bn in August 2024.

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