Money Supply Explodes With Gov’t Borrowing From the CBI

Money supply has jumped to unprecedented levels as government borrowing from the Central Bank of Iran takes on extraordinary proportions.
CBI data on Saturday show the net value of government’s arrears to the CBI stood at 351.4 trillion rials ($1.3 billion) in the fifth calendar month to August 22.
Government debt to the CBI jumped 256.3% in five months since the beginning of the current fiscal year. It was 207.4% higher than the corresponding period last year.  
Overreliance on CBI money was the main contributor to the expansion of the monetary base.  It shot up 42.1% or 1,530 trillion rials ($5.6 billion) in 12 months to Aug. 22, reaching 5,159.4 trillion rials ($19b). It was up 12.4% in five months since the beginning of the current fiscal year in March.