Iranian banks held foreign assets worth 24,139.3 trillion rials ($68.8 billion) by the end of the fifth calendar month to August 22, up by 18.9% compared to the same time last year.
Central Bank of Iran data show that the pace of growth in foreign assets declined noticeably. The annualized growth in overseas assets was 61.7% in the fall of 2021.
CBI foreign assets were in the region of 7,561.5 trillion rials ($21.57b) in the period, up 15.3% y/y and 3.3% higher in the first five months of the present fiscal year that started in late March.
Past rising patterns in CBI foreign assets had pushed up the monetary base in recent months. But as the pace slowed, its role in the exploding monetary base was contined.
The monetary base stood near 6,724.4 trillion rials ($19.18 billion) in the year to August 22, indicating 30.3% rise on the same period last year. It expanded 11.3% in the first four months of the year.
Data show that the CBI’s foreign assets alone accounted for 20.9 percentage points of annualized monetary base growth in the period. This is while its contribution to five-month growth of the monetary base was 3.5 percentage points.
Commercial Banks
Commercial banks held 2,385.8 trillion rials ($6.8b) in foreign assets -- 22.3% higher y/y and down 1.1% in five months.
Specialized banks held 3,987 trillion rials ($11.37b) overseas, indicating 18% rise y/y and up 1.7% in five months.
Likewise, foreign assets held by private lenders were near 10,204.8 trillion rials ($33.9b) – 21.2% higher annually and up 2.7% over five months.
The CBI report also took stock of other assets, including banknotes and debt of the government and other lenders.
Total assets owned by the CBI amounted to 12,931.1 trillion rials ($36.8b) in the said period. Banknotes and coins were worth 1,036 trillion rials ($2.95b), which was 24% higher from the earlier year.
Government and state companies owed 2,190.8 trillion rials ($6.25b) to the CBI during the period, 8.8% higher from the corresponding period last year.
Debts of banks to the CBI were estimated at 1,709.5 trillion rials ($4.87b) in the 12 months – up 37.6%. Debt of commercial lenders to the CBI jumped 16.8% in five months since the beginning of the fiscal year.
Banks and credit institutions had 5,721.9 trillion rials ($16.32b) in deposits with the CBI in the same period, which was 31.9% higher y/y.
Reserve requirements accounted for 5,663 trillion rials ($16.15b) of the total deposits of banks with the CBI, 36.3% higher y/y.
Reserve requirement not only guarantees deposits, but also serves as a CBI tool for controlling money circulation, inflation and money supply growth.
As per rules of the Money and Credit Council, the top monetary and policymaking body, the central bank can set the reserve rate between 10% and 15%.
