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Have you ever wondered how much money is there in the world? Money is an inseparable part of human living, and to be very honest, it is impossible to live life without money. You'll need money to purchase anything, including commodities and rations, literally. There are different countries across the globe, and according to the country, the currencies change, but the fact remains the same in every country, money is a need. So, when every person across the globe has money in their pockets, bank accounts, etc., exactly how much money is there in the world? Let's dive into the statistics and try to unleash the truth.

The US dollars

There are different ways to look into the matter. First, we can discuss how much cash is there in US currency. ( as the US currency is leading the world economy now). If you take all the bills and the coins floating across the United States, what will be the amount of them combined? First, you will need to know that all that hard and easily liquidated currency is known as a monetary base, or you can also address it as MO money supply, which includes all the money people have in banks, their pockets, and in safe places in the houses. According to a report published by Federal Reserve, until March 2021, there was $5.8 trillion in the monetary base. Though you think it is a tremendous amount, it is not. According to the US Census, there were 332,290,964 people alive in the US in May 2021. So, with this calculation, each person in the US should have about $17,454 in cash on them. The Federal Reserve has also published a report where it is mentioned that if you are willing to count all the dollar bills and cash across the globe, there are about US dollars of 2.1 trillion worth of notes and coins that you will be able to find. If you are willing to know about the US currency in circulation in 2022, let us tell you that according to the Federal Reserve, the currency in circulation was 2279.99800 Bil. of $ in September of 2022.

US dollars

How is money measured? 

To measure the money supply across the globe, it is divided into four different categories that are mentioned below

M0: It is the simplest form of money that we also can address as the physical form that includes coins, notes, and bills. This kind of money stays in people's pockets, under mattresses, and even in bank vaults. 

M1: This category of money includes all the elements of M0 money or physical forms of money, and besides that, it includes the money held in travelers’ demand deposits, checks, and other checkable deposits. In simple terms, M1 is the category that includes all the currencies and also assets that can easily be converted into cash without too many hazards.

M2: It is the second category of money that includes all the money supply from M1 and also expands to include mutual funds, money market securities, saving deposits, and other kinds of deposits available across the globe. These kinds of money are comparatively less liquid than M1. It means that you will not be able to convert these kinds of money into cash easily. M2 is not usually used as a medium of exchange. 

M3: This category of money includes all the elements of M2, and also it expands to include the institutional money market fund, large certificates of deposits, and some short-term repurchase agreements. This category comes with the lowest liquidity, and you cannot convert the money of M3 into cash easily. 

The Federal Reserve calculates each of the categories separately and then combines them together to find out how much money is there in the global market. 

How much money is there in the world at present? 

According to the Federal Reserve, about 50.3 billion notes were in circulation at the end of 2020. This calculation can be different in 2022 as it changes yearly, but the number will not be too much different. By December 2020, Federal Reserve data recorded $2.07 trillion in total currency in circulation. This calculation includes all coins and cash of every currency across the globe. If you are willing to know only the physical currencies, notes, and coins, it can be around $40 trillion. On the other hand, if we talk about M2 and M3, this figure could even go to over $90.4 trillion. It includes the trade market and cryptocurrencies as well. If you are willing to combine the money in all categories, the amount can reach something around $1,000,000,000,000,000. Now, it is a huge amount. 

Ending words

We can estimate that in the near future, the calculation of each money category can be different as people across the globe have less faith in liquid money and are switching to other assets such as cryptocurrencies. Also, the exact amount cannot be precisely calculated, but with these statistics, we can know the worth of reported money in all currencies globally. 


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