Islamabad, Sep 17: In the week ending September 2024, Pakistan saw a significant increase in cash holdings, with currency in circulation rising by Rs. 212.7 billion to Rs. 9.09 trillion.
This represents a 2.3% increase week-over-week. However, the total currency stock is down by Rs. 61.1 billion compared to Rs. 9.15 trillion at the end of June FY24. Total deposits with local banks reached Rs. 26.4 trillion, resulting in a currency-in-circulation (CiC) to bank deposit ratio of 34%.
The State Bank of Pakistan (SBP) data shows that broad money (M2) decreased by Rs. 940 billion to Rs. 35.6 trillion as of September 6, 2024, reflecting a 2.57% decline from Rs. 36.5 trillion at the end of FY24 (June). CiC constitutes 25.5% of the money supply (M2).
The net domestic assets of the banking system decreased by Rs. 892.4 billion year-to-date (FYTD), a sharper decline compared to Rs. 411 billion the previous year. Additionally, net foreign assets of the banking system fell by Rs. 47.8 billion so far in FY25.
