Broad Money Supply Will Tame Fiscal Deficit

Governor of the Central Bank of Iran Abdolnasser Hemmati said Friday the government will use part of the existing money supply to plug the fiscal deficit.  
Hemmati said this in his social media account in response to rising concerns over the likely negative impact of expanding money supply on consumer price inflation. 
Acknowledging that growth in money supply has always been a “structural phenomenon” in Iran’s economy, he added, dismissing predictions by experts about rising inflation due to the ever-growing money supply.
“Existing broad money and even its future growth cannot lead to high inflation… because a portion of the money will be used for taming the budget deficit,” he wrote.