Money supply rises by 9% YoY in May

July 2, 2019 (MLN): As any economy grows, the money supply in the economy also grows in absolute terms. The total money supply circulating within the economy in May 2019 has been recorded at around Rs.20.8 trillion as per provisional accounts on Monetary Aggregates for the month, maintained by the State Bank of Pakistan.

The money circulating within the economy until last month was Rs.20.51 trillion while until the corresponding period of last year, the figure was Rs.19.06 trillion. This means that over the year, money supply has increased by 9%.

Having broken down the overall money supply in broad categories, the central bank’s data shows that a total of Rs.5 trillion were circulated as notes while Rs.8.9 trillion account for transferable deposits which comprise all deposits that are exchangeable on demand at par without penalty/restriction.

The amount circulated as notes during the month has risen by over Rs.685.6 billion (or 16%) over the year.

Apart from this, other deposits constituted Rs.2.86 trillion in May, up by 12%, YoY. Other deposits represent all claims other than transferable deposits in national or foreign currency that are represented by evidence of deposits. In contrast, coins circulated reduced from Rs.8.88 billion to Rs.8.6 billion during the year.

Rs.255.92 billion worth of deposits were held with post offices while National Saving Schemes held Rs.3.75 trillion, up from Rs.3.4 trillion.

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