November 28, 2024 (MLN): The total money supply circulating within the economy till October 2024 has been recorded at Rs39.93 trillion, according to provisional accounts on Monetary Aggregates for the month, maintained by the State Bank of Pakistan (SBP).
The money circulating within the economy until September 2024 was Rs39.89tr whereas, in the month of October of last year, the figure was Rs34.91tr. This means that the money supply has risen by 0.11% MoM while, on a year-on-year basis, it has jumped by 14.4% YoY.
Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.93tr were circulated as notes while Rs21.99tr 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 rose by over 1.5% MoM while rose by 6.26% over the year.
This reflects higher cash withdrawals by depositors to meet needs amid high inflation.
Apart from this, other deposits constituted Rs5.84tr in October 2024, down by 2.11% MoM and up 10.05% 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 stood at Rs9.09 billion in October 2024 compared to Rs9.06bn in the previous month and Rs9.19bn in October 2023.
