Global Money in Circulation
Global M2 money supply reached roughly 100 trillion U.S. dollars in 2024, according to the Bank for International Settlements BIS. This figure includes cash, demand deposits, and near-money instruments across major economies.
Broad money aggregates vary widely by region because of differences in financial depth and currency use. The United States, the euro area, and China together account for more than half of global M2.
United States Money Supply
U.S. M2 money supply stood at about 21 trillion dollars in mid-2024, as reported by the Federal Reserve Federal Reserve. M2 includes currency, checking deposits, savings deposits, and retail money funds.
Physical currency in circulation, often called Federal Reserve notes, totaled roughly 2.3 trillion dollars in 2024, with the majority held outside the United States San Francisco Fed. The Bureau of Engraving and Printing produces new notes to replace damaged ones and meet demand.
Key Concepts and Data Sources
M0, M1, and M2 Explained
M0, or the monetary base, is the sum of physical currency and bank reserves at the central bank. M1 adds demand deposits and other liquid deposits, while M2 includes savings and small time deposits.
Analysts track these aggregates to gauge liquidity and economic activity. The Federal Reserve releases weekly and monthly data on its balance sheet and money supply measures Federal Reserve H.6 release.
Why Money Supply Matters
Changes in money supply can influence interest rates, inflation expectations, and asset prices. Central banks adjust policy to keep the supply aligned with economic growth.
Comparing Major Economies
China's M2 exceeds 300 trillion yuan, reflecting its large banking system and high savings rate IMF. The euro area M2 is around 15 trillion euros, driven by corporate and household deposits.
Data Reliability and Updates
Official statistics from central banks and the IMF are the most reliable sources for money supply figures. Investors and researchers should check release dates and definitions before comparing aggregates across countries.