The Deputy Economic Governor of the Central Bank of Iran announced that the money supply in the country reached over 687 trillion tomans by the end of January, marking a 22.7 percent increase compared to January of last year. According to the state news agency IRNA, Payman Ghorbani stated on Wednesday, March 6, that the growth of money supply in January 2014 compared to January 2013 was 27.9 percent. The money supply in Iran was slightly over 70 trillion tomans in spring 2004. The Central Bank of Iran had announced on October 25 of last year that the money supply had increased fivefold during the two administrations of Mahmoud Ahmadinejad, the former president of Iran. In recent years, several economists and experts attributed the unprecedented inflation growth during the ninth and tenth governments to the increase in money supply. These experts cited budget deficits, financial mismanagement, and borrowing from the Central Bank as the causes of the unprecedented money supply growth during Ahmadinejad's eight years in office. The Deputy Economic Governor further stated that about 0.33 percentage points of last year's money supply growth was related to the increased coverage of the Central Bank's monetary statistics and the inclusion of data from five banks and two credit institutions in the monetary and banking statistics. Mr. Ghorbani added, "Considering this effect, the money supply growth in the year ending January 2015 compared to the same figure from the previous year decreased by 0.5 percentage points." The Deputy Economic Governor also mentioned that the average dollar rate in the free market for the 12 months ending February 2015 was 3,249 tomans, which compared to the same figure from last year, 3,228 tomans, showed only a 0.6 percent increase. The dollar rate in the free market was about 1,044 tomans in December 2010, but it reached 1,250 tomans in October 2011 and has faced extraordinary jumps since then, increasing to about 3,700 tomans in 2012. Over the past year, the dollar rate has experienced minimal changes, and stability has been maintained in this market.
Central Bank of Iran: Money Supply Increased to 687 Trillion Tomans
The Central Bank of Iran reported that the money supply has increased to 687 trillion tomans, a 22.7% rise from last year, raising concerns about inflation and economic management. This increase is attributed to various factors, including financial mismanagement during previous administrations. The stability of the dollar rate in the free market contrasts with the historical volatility seen in recent years.
👥 Key Players
📰 What Happened
The Central Bank of Iran announced that the money supply has increased to 687 trillion tomans, a 22.7% rise from the previous year. This growth has raised concerns about inflation and economic management in the country.
- The money supply was over 70 trillion tomans in spring 2004.
- The average dollar rate in the free market showed minimal change, indicating some stability.
💡 Why It Matters
📚 Background
Iran has faced significant economic challenges, including high inflation and currency volatility, largely due to mismanagement and sanctions. Understanding the money supply is essential for grasping the broader economic landscape.
🏷️ Entities Mentioned
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