Currency in circulation (CiC) in Pakistan has increased by Rs. 900 billion to Rs. 9.4 trillion as of June 21, 2024, according to the latest data by the State Bank of Pakistan (SBP).
According to Topline Securities, this is the highest level of cash in circulation ever recorded in Pakistan.
Similarly, Broad Money (M2) is up 6.7 percent to Rs. 35.1 trillion in the last 6 months. Of this, the 1.7 percent increase was observed in the month of June 2024.
This takes CiC as a percentage of M2 to 26.7 percent as of June 21, 2024, compared to 25.3 percent observed till May 31, 2024.
This increase of CiC in the month of June 2024 is largely within the trend seen in June historically in range of 4-8 percent. This increase in CiC is also due to Eid-ul-Adha. A portion of this increase is likely to be reversed in the month of July 2024, based on historical analysis.
Meanwhile, net domestic assets of the banking system show an increase of Rs. 3.25 trillion, compared to an increase of Rs. 5.6 trillion a year earlier.
Net foreign assets of the banking system have increased by Rs. 348 billion as of June 21, 2024.
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