Cash in Circulation Declines By Rs. 110 Billion in Just A Week

Cash holdings in Pakistan have recorded a substantial decrease of Rs. 110 billion in the week that ended on 29 November 2024, according to the latest data by the State Bank of Pakistan (SBP). The currency in circulation decreased by 1.2 percent WoW to Rs. 9.05 trillion from Rs. 9.145 trillion on November 22. Conversely, it is down by Rs. 118 billion from Rs. 9.15 trillion in total currency stock in end-June FY24. Meanwhile, total deposits with local banks stood at Rs. 27.179 trillion, representing a CiC-to-bank deposit ratio of 33.2 percent. SBP data reveals that broad money (M2) increased by Rs. 317 billion to Rs. 36.3 trillion WoW as of 29 November 2024, but indicating an overall supply decrease of 0.59 percent from Rs. 36.55 trillion at the end of FY24 (June). CiC as a percentage of Money Supply (M2) is at 24.9 percent. Meanwhile, net domestic assets of the banking system show a decrease of Rs. 601 billion FYTD, compared to an increase of Rs. 275 billion a year earlier. Net foreign assets of the banking system have increased by Rs. 385 billion so far in FY25.