Broad Money witnesses downward trend in 2011-12
ISLAMABAD, May 31 (APP): Broad Money and close substitutes for money, witnessed an expansion of 9.09 per cent as compared to 11.47 percent during the same period in 2010-11, according to Economic Survey of Pakistan 2011-12. The deceleration in the money supply is primarily driven by the  significant fall in the Net Foreign Assets (NFA) of the banking system, along  with increased government borrowing and a one-off settlement of circular debt. During the first half of the fiscal year 2011-12, a significant decline  in capital financial accounts inflows resulted in the depletion of State Bank of Pakistan (SBP) foreign exchange reserves to finance the major part of current deficit.