Cash holdings in Pakistan have seen a significant increase, rising by Rs. 214.5 billion in the week ending October 4, 2024, according to the latest data from the State Bank of Pakistan (SBP). The currency in circulation grew by 2.4 percent week-on-week, reaching Rs. 9.03 trillion, up from Rs. 8.81 trillion on September 30.
However, this figure is still down by Rs. 121.3 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. 26.7 trillion, resulting in a currency-in-circulation (CiC) to bank deposit ratio of 33.8 percent. Meanwhile, broad money (M2) decreased by Rs. 677 billion to Rs. 35.8 trillion as of October 4, 2024, marking a 1.85 percent decline from Rs. 36.5 trillion at the end of FY24 in June. This decrease was primarily driven by a 2.2 percent week-on-week fall in total bank deposits, according to Topline Securities.
The currency in circulation as a percentage of the money supply (M2) is currently at 25.2 percent. Additionally, the net domestic assets of the banking system have decreased by Rs. 707.6 billion for the fiscal year to date, compared to a decrease of Rs. 488.6 billion during the same period last year.
