Money supply reaches to Rs39.61tr as of June

July 31, 2024 (MLN): The total money supply circulating within the economy has surged by 4.4% MoM to Rs39.61 trillion as of June 2024, 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 May 2024 was Rs37.95tr whereas, in the month of June of last year, the figure was Rs34.5tr. This means that the money supply has risen by 4.37% MoM while, on a year-on-year basis, it has jumped by 14.82% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs9.13tr were circulated as notes while Rs21.39tr 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 4.61% MoM while remaining largely unchanged over the year.

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

Apart from this, other deposits constituted Rs5.97tr in June 2024, up by 4.78% MoM and up 16.88% 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 Rs9.44 billion in June 2024 compared to Rs9.43bn in the previous month and Rs8.97bn in June 2024.

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