Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

Trending :

Money supply reaches to Rs30.68tr in 7MFY23

Govt bank borrowing hits new high
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

March 02, 2023 (MLN): The total money supply circulating within the economy during the seventh month of FY23 has been recorded at around Rs30.68 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 December 2022 was Rs30.74tr whereas, until the corresponding month of last year, the figure was Rs28.12tr. This means that the money supply has declined by 0.19% MoM whereas, on a year-on-year basis, it has jumped by 9.10%.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs7.8tr were circulated as notes while Rs14.98tr accounted for transferable deposits which comprise all deposits that are exchangeable on demand at par without penalty/restriction.

The currency circulated as notes which has been high in Pakistan relative to other developed and emerging economies because of the high informal economy rose by over 11.4% over the year.

Meanwhile, it is worth mentioning that in 2018 when the PTI government came into power, the total currency in circulation in the country was approximately Rs4.3tr. From then until the beginning of the Covid period in March 2020, this figure has surged to Rs5.6tr. In May 2020, notes in circulation crossed the Rs6tr mark, and since then it has consistently stayed above that mark.

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

Apart from this, other deposits constituted Rs4.48tr in January 2023, up by 2.75% MoM and 12.2% YoY. Other deposits represent all claims other than transferable deposits in national or foreign currency that are represented by evidence of deposits.

Similarly, coins in circulation remained relatively flat at Rs9 billion in January 2023 compared to December 2022 and January 2022.  

Copyright Mettis Link News 

Posted on: 2023-03-02T14:24:29+05:00