Money supply surpasses Rs40tr mark in November

December 30, 2024 (MLN): The total money supply circulating within the economy till November 2024 has been recorded at Rs40.09 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 October 2024 was Rs39.93tr whereas, in the month of November of last year, the figure was Rs35.18tr. This means that the money supply has risen by 0.39% MoM while, on a year-on-year basis, it has jumped by 13.95% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs9.05tr were circulated as notes while Rs22tr 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 1.33% MoM while rose by 7.89% over the year.

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

Apart from this, other deposits constituted Rs5.86tr in November 2024, up by 0.21% MoM and up 11.06% 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 Rs9.12 billion in November 2024 compared to Rs9.09bn in the previous month and Rs9.24bn in November 2023.

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