KARACHI: The State Bank of Pakistan (SBP) said on Friday it has issued fresh currency notes worth Rs342 billion during Ramazan.

The amount is Rs105bn higher than last year’s, but the appetite for fresh notes remains insatiable. Trading of fresh notes continues despite a heavy supply from the central bank.

The SBP issues fresh currency notes on Eidul Fitr every year.

Although the amount has been increasing annually, demand for new notes continues to surpass their supply.

No assessment is available about the exact need for fresh currency notes. This is the reason that despite the issuance of new notes worth Rs342bn, many people are buying them from the open market at a premium.

Booking for fresh currency notes has been difficult as many people complain that they did not get any response despite repeated requests.

The SBP issued a press release on June 16 that said the booking service would end by June 20 and that no booking code would be issued thereafter.

This indicates that demand for fresh currency notes is a lot higher than their supply.

The SBP said on Friday that out of the total amount provided, commercial banks were issued fresh notes of Rs40bn of small denomination, ie up to Rs100, as opposed to Rs22bn issued last year.

This amount also includes Rs25bn issued through the SMS service operated by the SBP through 1,002 branches of commercial banks in 120 cities and its 16 field offices in 15 cities.

“An overwhelming response has been received from public on this service through which more than 1.5 million people obtained fresh notes comprising three packets of Rs10, one packet of Rs50 and one packet of Rs100. Last year, Rs16bn was issued through this system,” said the SBP.

The amount includes fresh notes of higher denomination, Rs500 and above, amounting to Rs296bn versus Rs 211bn issued last year.

In addition, commercial banks have been advised to ensure that fresh notes are supplied to their ATMs during Ramazan in general and the long weekend in particular.

Special teams of the SBP and SBP Banking Services Corporation officials have also be deputed to inspect and monitor ATMs across Pakistan during Eid holidays.

So far, no fresh currency notes are available through ATMs.

Published in Dawn, June 24th, 2017