According to the latest data released by the State Bank of Pakistan (SBP), cash holdings in Pakistan witnessed a significant decline of Rs. 110 billion during the week ending November 29, 2024. The currency in circulation (CiC) fell by 1.2 percent week-on-week (WoW), dropping to Rs. 9.05 trillion from Rs. 9.145 trillion recorded on November 22.
On a fiscal year-to-date (FYTD) basis, the total currency stock has decreased by Rs. 118 billion from Rs. 9.15 trillion at the end of June FY24. In contrast, total deposits with local banks stood at Rs. 27.179 trillion, resulting in a CiC-to-bank deposit ratio of 33.2 percent.
The SBP data also revealed that broad money (M2) increased by Rs. 317 billion WoW to reach Rs. 36.3 trillion as of November 29, 2024. However, this represents an overall decline of 0.59 percent compared to Rs. 36.55 trillion at the end of FY24. The CiC as a percentage of the total money supply (M2) currently stands at 24.9 percent.
The net domestic assets (NDA) of the banking system have shown a sharp decline of Rs. 601 billion FYTD, a stark contrast to the Rs. 275 billion increase recorded during the same period last year. On the other hand, net foreign assets (NFA) of the banking system have risen by Rs. 385 billion so far in FY25, providing some relief to the overall financial outlook.
