Quote:
Originally Posted by bestbasit2009
can anybody tell me that what was Pakistani currency circulation in 2011?
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Currency in circulation up by Rs263bn
The currency in circulation has increased by Rs263 billion during 2011, showing a year-on-year growth of 19 per cent as on Feb 15, 2011 from June 30, 2010.
the currency-to-deposit ratio has increased to 33 per cent as on February 2011 from 29 per cent at end June 2010.
The prime reason for this increase in currency in circulation is heavy government borrowings from the State Bank of Pakistan for budgetary support.
The government borrowings from SBP essentially mean new money, besides being inflationary,understanding between SBP and the government to restrict such borrowings at the end-Sept level of Rs1,290 billion will help in restraining the printing of new notes and to reduce the currency in circulation.
REF
R ABDUL HAFEEZ SHEIKH (BRIEFING IN SENATE)