Money supply rises to Rs36.86tr in March

May 02, 2024 (MLN): The total money supply circulating within the economy till March 2024 has been recorded at Rs36.86 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 February 2024 was Rs36.12tr whereas, in March of last year, the figure was Rs32.07tr. This means that the money supply has risen by 2.06% MoM while, on a year-on-year basis, it has jumped by 14.93% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.63tr were circulated as notes while Rs19.54tr accounted for transferable deposits which comprise all deposits that are exchangeable on demand at par without penalty/restriction.

The currency circulated as notes which has been high in Pakistan relative to other developed and emerging economies because of the high informal economy rose by over 3.11% MoM and by 4.57% 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 March 2023, up by 0.09% MoM and 19.83% 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 Rs9.4 billion in March 2023 compared to Rs9.37bn in the previous month and Rs9.08bn in March 2022.

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