Central Bank: Approximately 30% Growth in Money Supply in Iran

The money supply in Iran has reached 1 trillion and 184 thousand billion tomans, showing a 28.1% increase compared to last December. News agencies reported on Thursday, February 17, that the latest report from the Central Bank indicates a 16.5% growth in the money supply compared to the end of last year. In this increase, the share of money is determined to be 154 thousand billion tomans, while the share of quasi-money, mainly consisting of bank deposits, is 1030 thousand billion tomans. The Central Bank of Iran had previously reported in January that the money supply at the end of November this year was 762 and 162 trillion tomans. The money supply in Iran has significantly increased over the past decade. This figure was approximately 67 thousand billion tomans at the beginning of Mahmoud Ahmadinejad's government in 2005, indicating that the money supply in Iran has increased more than 17 times since then. This issue has been cited by several economic experts as one of the main causes of the high inflation rate in Iran. According to the Central Bank's announcement, the money supply in January 2015 reached approximately 946 thousand billion tomans, and in January 2014, it was about 560 thousand billion tomans. The money supply in January 2011 was around 327 thousand billion tomans, and in January 2010, it was also reported as 276 thousand billion tomans. Some economists say that one of the consequences of the high money supply is high inflation, which leads to a decrease in people's purchasing power and increases economic pressures on low-income individuals. In August 2014, Ezzatollah Yusefian Molla, a member of the Economic Corruption Combat Headquarters, announced that one-fourth of the money supply in Iran is held by about 600 individuals. Mr. Yusefian Molla stated that the money supply in Iran that year was 400 thousand billion tomans, adding that about 100 billion tomans of it was provided as loans to these 600 individuals. Gholamali Jafarzadeh Imanabadi, a member of the Budget Consolidation Commission for 2017, also said on February 1 this year that "the Parliament predicts an increase of 450 thousand billion tomans in the money supply next year." Mr. Jafarzadeh Imanabadi added: "The Parliament has tried to direct the budget [for 2017] towards increasing production to reduce the money supply."