KARACHI: The State Bank issued Rs138 billion fresh currency notes on public demand during the month of Ramazan, but the target could not be achieved owing to delay in supply.

Failing to secure fresh notes from bank branches, people turned to open market, hence brisk trading of new currency notes was witnessed throughout the month.

The State Bank on Wednesday said it had issued fresh currency notes worth Rs138.76bn for general public during Ramazan and the amount was much higher than the previous year.

The State Bank traditionally issues fresh currency notes each year in Ramazan and the amount is rising every year. However, banks delay supply of fresh notes that become available after 10 to 15 days of Ramazan.

It mounts demand and many customers have to be turned away because of limited supply.

“It is intriguing that bank branches complain of limited supply while fresh currency notes were traded openly in market few hundred yards away from the State Bank,” commented an account holder.

The currency market is in close vicinity of head offices of commercial banks in Karachi.

At a National Bank branch, customers requests for new notes were declined on the pretext that the head office or the main office has yet not supplied notes.

The situation was comparatively better at United Bank branches. At other banks, notes were supplied but on a limited scale.

The State Bank said it has issued fresh currency notes of Rs10 and Rs100 denominations double than last year.

The high demand was noted for Rs100 denomination notes. The SBP did not provide figures of the amount of Rs100 denomination.

However, the SBP said compared to last year the amount of fresh currency notes was significantly higher.

Last year the SBP issued notes worth Rs114bn and this year Rs138bn.

“The SBP fully utilized the large network of over 10,000 branches of commercial banks for distribution of fresh currency notes to the general public during the holy month of Ramazan,” said the SBP in a press release.