Economy, Business And Markets

$245b in circulation, $5b in Foreign Debt

$245b in circulation, $5b in Foreign Debt$245b in circulation, $5b in Foreign Debt

Iran has $5.21 billion in foreign debt, and some $245 billion are circulating the economy, central bank statistics show. The country had $428 million in short-term debt and $4.78 billion in long-term debt, as of 21 May, 2015. Central bank records show total money supply exceeded 8 quadrillion rials by 21 May, surging 23.2% in the prior 12 months. Money supply has doubled in the past two years. Banknotes and coins in circulation rose 14.2% since last May and reached 2.97 quadrillion rials ($90.9 billion at market exchange rate). Increases in money supply lead to surges in inflation, especially if the increase comes from cash. The Central Bank of Iran recently lowered its cap on borrowing and lending rate, a move pundits say will raise inflationary pressures in an economy with 17% inflation.