Pakistan's money supply reaches Rs39.2tr

August 30, 2024 (MLN): The total money supply (M3) circulating within the economy till July 2024 has been recorded at Rs39.2 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 June 2024 was Rs39.61tr whereas, in July of last year, the figure was Rs34.19tr.

This means that the money supply has dropped by 1.04% MoM while, on a year-on-year basis, it has jumped by 14.63% YoY.

Having broken down the overall money supply into broad categories, the SBP data shows that Rs8.95tr were circulated as notes while Rs21.15tr 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 fell 2.01% compared to a month ago, while it rose by 3.73% over the year.

Apart from this, other deposits constituted Rs5.96tr in July 2024, down 0.19% MoM, while up 17.05% 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 Rs9.45 billion in July 2024 compared to Rs9.44bn in the previous month and Rs9.04bn in July 2023.

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