How Much Money Is There in the World?

Money may not literally make the world go round, but it is the most vital product in any economic system. Often split between those who save and those who spend, it can mean more power, more options, and more comfort.

I have run into many situations with business owners and entrepreneurs hunting for funds to launch a new project. They usually come to me because they believe it is impossible to find money, that nobody has any left, that it has simply run out.

In multiple instances across my videos, podcasts, blog articles, and other content, I explain that money is never the real shortage. What is missing is vision, and in many cases, contacts. So you can grasp just how much money and wealth exists in the world, I spoke with several financial experts from the US, the UK, and China to compile categories of money and how much sits in each one.

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AT THE CLOSE OF 2020

There is currently around US$36.8 trillion in its simplest circulating form, known as “narrow money.” This includes:

• banknotes,
• coins,
• as well as the value of “easy access” funds such as checking accounts.

But that figure jumps to an astonishing US$90.4 trillion once you count “broad money,” which includes:

• savings,
• ISAs (or fixed-term accounts)

The global stock of money has been valued at around US$215 trillion, while the value held in property stands at US$217 trillion.

And the number becomes even harder to grasp when you factor in the derivatives market, which includes:

• stocks,
• bonds,
• commodities,
• currencies,
• and index rates

At the low end, financial experts estimate this is worth US$630 trillion.

At the high end, the total climbs to US$1.2 quadrillion, or 1,000 trillion, or US$1,200,000,000,000,000.

So if every person on the planet received an equal share of that staggering figure, each would get roughly US$154,000.00.

Who Decides How Much Money Exists in the World?

The main controller of the money supply is each country’s central bank. Central banks such as the Bank of Mexico can raise or lower the share of deposits that commercial banks must hold in reserve.

They can also inject cash into the market and raise or cut the interest rate at which they lend to commercial banks. Higher interest rates discourage people from borrowing and therefore lead them to spend less.

In Mexico, the amount of currency in circulation shifts with public demand. At Christmas, for example, the public needs more cash to withdraw from bank accounts. Physical currency now represents less than 20 percent of all money. Debit card payments have surged in recent years and may one day replace tangible cash.

The next time you think there is no money for your project, change the way you see the world. You will realize there are many ways to secure investment and loans outside the banks. It comes down to having the creativity to look for it and to convince the people who hold it to partner with you.