Money supply reaches Rs40.57tr as of Feb

March 27, 2025 (MLN): The total money supply circulating within the economy till February 2025 has been recorded at Rs40.57 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 January 2025 was Rs40.13tr, whereas, in February of last year, the figure was Rs36.12tr. This means that the money supply has risen by 1.1% MoM while, on a year-on-year basis, it has jumped by 12.33% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs9.44tr were circulated as notes while Rs22.34tr 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,y rose by over 2.68% MoM while rose by 12.74% over the year.

This reflects higher cash withdrawals by depositors to meet needs amid high inflation.

Apart from this, other deposits constituted Rs5.53tr in February 2025, up by 1.47% MoM and down 0.62% 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 Rs9.2 billion in February 2025 compared to Rs9.17bn in the previous month and Rs9.37bn in February 2024.

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