Money supply reaches to Rs34.69tr as of September

November 02, 2023 (MLN):  The total money supply circulating within the economy till September 2023 has been recorded at Rs34.69 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 August 2023 was Rs34.48tr whereas, in the month of September of last year, the figure was Rs30.74tr. This means that the money supply has risen by 0.59% MoM while, on a year-on-year basis, it has jumped by 12.85% YoY.

According to the central bank, this slowdown in the pace of money supply is primarily attributed to the unwinding of seasonal effects, such as those related to Haj/Umrah.

Furthermore, individuals are choosing to deposit their money due to the high interest rates offered on PLS accounts.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.27tr were circulated as notes while Rs17.91tr accounted for transferable deposits which comprise all deposits that are exchangeable on demand at par without penalty/restriction.

The currency circulated as notes which had been high in Pakistan relative to other developed and emerging economies because of the high informal economy fell by over 0.56% MoM, while rose 8.28% over the year.

Apart from this, other deposits constituted Rs5.23tr in September 2023, down by 0.07% MoM and up 13.96% 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 rose to Rs9.17 billion in September 2023 compared to Rs9.11bn in the previous month and Rs9.01bn in September 2022.

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