Money supply reaches to Rs37.24tr in April

May 31, 2024 (MLN): The total money supply circulating within the economy till April 2024 has been recorded at Rs37.24 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 March 2024 was Rs36.86tr whereas, in the month of April of last year, the figure was Rs32.74tr. This means that the money supply has risen by 1.03% MoM while, on a year-on-year basis, it has jumped by 13.73% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.73tr were circulated as notes while Rs19.78tr 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 rose by over 1.12% MoM while fell by 2.44% over the year.

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

Apart from this, other deposits constituted Rs5.62tr in April 2024, up by 0.79% MoM and 21.5% 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 Rs9.43 billion in April 2024 compared to Rs9.4bn in the previous month and Rs9.06bn in April 2023.

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