Cash holdings in Pakistan have seen a significant increase, rising by Rs. 212.7 billion in the week ending September 2024, according to the latest data from the State Bank of Pakistan (SBP). The currency in circulation grew by 2.3 percent week-on-week, reaching Rs. 9.09 trillion since August 30. However, this figure is down by Rs. 61.1 billion from the total currency stock of Rs. 9.15 trillion at the end of June FY24.
Total deposits with local banks stood at Rs. 26.4 trillion, resulting in a currency-in-circulation (CiC) to bank deposit ratio of 34 percent.
In related financial metrics, the SBP data shows that broad money (M2) decreased by Rs. 940 billion to Rs. 35.6 trillion as of September 6, 2024. This marks an overall supply decrease of 2.57 percent from Rs. 36.5 trillion at the end of FY24 in June. The CiC as a percentage of the money supply (M2) is currently at 25.5 percent.
Additionally, the net domestic assets of the banking system have decreased by Rs. 892.4 billion for the fiscal year to date, compared to a decrease of Rs. 411 billion during the same period last year. Meanwhile, the net foreign assets of the banking system have declined by Rs. 47.8 billion so far in FY25.
