Money Supply Surge at 11-Month High

The Central Bank of Iran in a report said that the monetary base has increased extraordinarily in the past several months largely due to government borrowing from the CBI.
The total money in circulation crossed 5,000 trillion rials ($20.8 billion) at the end of the third calendar month to June 21, posting 30.7% or 1,170 trillion rials ($4.8b) increase compared to the same month a year before. That was the highest point-to-point growth in the past 11 months, the CBI website said.
It also was 9.2% higher in the first quarter (March 21-June 1) of the current fiscal year, up 0.6 percentage points compared to the 8.6% in Q1 of last year.
In its report the CBI noted that the huge expansion in the monetary base in the first quarter was the outcome of government borrowing from the central bank for discretionary spending.