Pakistan's money supply reaches Rs37.95tr

July 03, 2024 (MLN): The total money supply (M3) circulating within the economy till May 2024 has been recorded at Rs37.95 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 April 2024 was Rs37.24tr whereas, in the month of May of last year, the figure was Rs33.14tr.

This means that the money supply has risen by 1.9% MoM while, on a year-on-year basis, it has jumped by 14.51% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.73tr were circulated as notes while Rs20.4tr 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 remained largely stable compared to a month ago, while it rose by 1.87% over the year.

Apart from this, other deposits constituted Rs5.7tr in May 2024, up 1.5% MoM and 17.94% 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 Rs9.43 billion in May 2024 compared to Rs9.43bn in the previous month and Rs9.11bn in May 2023.

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