Money supply reaches to Rs35.58tr in January

March 06, 2024 (MLN): The total money supply circulating within the economy till January 2023 has been recorded at Rs35.58 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 2023 was Rs35.74tr whereas, in the month of January of last year, the figure was Rs30.69tr. This means that the money supply has fallen by 0.44% MoM while, on a year-on-year basis, it has jumped by 15.95% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.42tr were circulated as notes while Rs18.67tr 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 0.15% MoM while rose 7.8% over the year.

Apart from this, other deposits constituted Rs5.37tr in January 2023, down by 1.51% MoM and up 19.76% 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 remained rose to Rs9.34 billion in January 2023 compared to Rs9.29bn in the previous month and Rs9.01bn in January 2022.

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