Rising Liquidity Stress Tied to Borrowing From NDFI, Sanctions

In a press release outlining reasons behind the monumental growth in liquidity in recent months, the Central Bank of Iran blamed borrowing from the National Development Fund of Iran and the new US sanctions on oil exports. 
The CBI said the stress of liquidity growth “has rightly become a catchphrase among analysts and attracted attention in the past year”.   
Although the bank has not released details about liquidity growth since last December, in a press release last month it said liquidity had climbed to 24,721 trillion rials ($145 billion) at the end of the last fiscal year (March 2019) – up 31% on a year-on-year basis.