Cash in Circulation Rises By Rs. 214.5 Billion in A Week

Cash holdings in Pakistan have recorded a substantial increase of Rs. 214.5 billion in the week that ended on 4 October 2024, according to the latest data by the State Bank of Pakistan (SBP). The currency in circulation increased by 2.4 percent WoW to Rs. 9.03 trillion from Rs. 8.81 trillion on September 30. Conversely, it is down by Rs. 121,3 billion from Rs. 9.15 trillion in total currency stock in end-June FY24. Meanwhile, total deposits with local banks stood at Rs. 26.7 trillion, representing a CiC-to-bank deposit ratio of 33.8 percent. SBP data reveals that broad money (M2) decreased by Rs. 677 billion to Rs. 35.8 trillion as of 4 October 2024, indicating an overall supply decrease of 1.85 percent from Rs. 36.5 trillion at the end of FY24 (June). This was led by a 2.2 percent WoW fall in total deposits with banks, said Topline Securities. CiC as a percentage of Money Supply (M2) is at 25.2 percent. Meanwhile, net domestic assets of the banking system show a decrease of Rs. 707.6 billion FYTD, compared to a decrease of Rs. 488.6 billion a year earlier. Net foreign assets of the banking system have increased by Rs. 30.2 billion so far in FY25.