Money Supply Surges 26%

Money supply has reached 11,966 trillion rials ($316.5 billion) by January 19, 2017, to mark a 26% surge compared with the same period of last year, said the Central Bank of Iran’s governor. “The reason for this 26% growth in liquidity during the 12 months to January 19 was the 17.3% and 7.4% increase in the monetary base and money multiplier respectively,” Valiollah Seif was also quoted as saying by Mehr News Agency. The CBI chief said the main reason for the surge in monetary base is not only the debts of the banking system to CBI due to their internal and balance sheet problems, but also the guaranteed purchase of strategic agricultural products by the government and its financing of small- and medium-sized enterprises.