January 31, 2024 (MLN): The total money supply circulating within the economy till December 2023 has been recorded at Rs35.74 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 November 2023 was Rs35.18tr whereas, in the month of December of last year, the figure was Rs30.744tr. This means that the money supply has risen by 1.6% MoM while, on a year-on-year basis, it has jumped by 16.25% YoY.
Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.43tr were circulated as notes while Rs18.7tr 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 increased by 0.54% MoM, while rising by 9.94% over the year.
Apart from this, other deposits constituted Rs5.45tr in December 2023, up by 3.44% MoM and 25% 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 Rs9.29 billion in December 2023 compared to Rs9.24bn in the previous month and Rs9.07bn in December 2022.
