Money supply reaches to Rs36.12tr in February

April 02, 2024 (MLN): The total money supply circulating within the economy till February 2024 has been recorded at Rs36.12 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 2024 was Rs35.58tr whereas, in February of last year, the figure was Rs31.24tr. This means that the money supply has risen by 1.5% MoM while, on a year-on-year basis, it has jumped by 15.61% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.37tr were circulated as notes while Rs19.05tr 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 0.56% MoM while rising by 4.85% over the year.

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

Apart from this, other deposits constituted Rs5.57tr in February 2023, up by 3.63% MoM and up 17.51% 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 Rs9.37 billion in February 2024 compared to Rs9.34bn in the previous month and Rs9.04bn in February 2023.

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