Money supply stands at over Rs40tr as of January

February 28, 2025 (MLN): The total money supply circulating within the economy till January 2025 has been recorded at Rs40.13 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 December 2024 was Rs40.21tr whereas, in January of last year, the figure was Rs35.58tr. This means that the money supply has fallen by 0.2% MoM while, on a year-on-year basis, it has jumped by 12.78% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs9.19tr were circulated as notes while Rs22.25tr 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 1.09% MoM while rose by 9.19% over the year.

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

Apart from this, other deposits constituted Rs5.45tr in January 2025, down by 7.08% MoM and up 1.5% 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 stood at Rs9.16 billion in January 2025 compared to Rs9.15bn in the previous month and Rs9.34bn in January 2024.

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