On Thursday, September 14, the Central Bank of Iran announced that liquidity in July 2017 had reached over 1,333 trillion tomans, marking a 23.3% increase compared to the same period last year. According to the report, liquidity also increased by 6.4% compared to the end of the previous year. The Central Bank stated that the share of money in Iran's liquidity at the end of July was 159 trillion tomans, while the share of quasi-money was 1,174 trillion tomans. Some experts believe that liquidity in the form of 'quasi-money' does not have inflationary effects in the short term. The increase in liquidity has been cited by several economic experts as one of the main reasons for the high inflation rate in Iran. Ali Tayebnia, the Minister of Economy in Hassan Rouhani's first government, previously stated that 'a significant portion of the liquidity volume in recent years has been due to the interest rates on bank deposits and loan rates, which have occurred due to rising inflation.' Liquidity in Iran has significantly increased since the 1979 revolution, especially in the last decade. The newspaper 'Donya-e-Eqtesad' had previously reported that from 1979 to 2012, the volume of liquidity in Iran's economy had increased by 1,503 times. According to Central Bank data, this index rose from 258 billion tomans at the beginning of 1979 to 387.5 trillion tomans at the end of July 2012. Additionally, liquidity at the beginning of Mahmoud Ahmadinejad's government in 2005 was about 67 trillion tomans, indicating that liquidity in Iran has increased approximately 20 times since then. This figure surpassed 1,000 trillion tomans at the end of 2015, reaching 1,017 trillion tomans with a 30% growth. In this context, questions arise about the instability of Iran's financial markets, why Iran has the highest money laundering risk rating, and the income per capita in 2016 being equal to that of 2005. Long queues have formed following the announcement of a reduction in bank interest rates in Iran.
Liquidity in Iran has exceeded 1,333 trillion tomans
The Central Bank of Iran reported that liquidity has reached over 1,333 trillion tomans, a significant increase attributed to various economic factors. Experts warn that this surge in liquidity may contribute to ongoing inflation issues in the country. The historical context shows a dramatic rise in liquidity since the 1979 revolution, raising concerns about financial stability.
👥 Key Players
📰 What Happened
The Central Bank of Iran announced that liquidity in the country has surpassed 1,333 trillion tomans, reflecting a significant increase over the past year. Experts warn that this surge could exacerbate the already high inflation rates in Iran.
- Liquidity increased by 23.3% compared to the previous year.
- Quasi-money constitutes a significant portion of the total liquidity.
💡 Why It Matters
📚 Background
Since the 1979 revolution, Iran has seen a dramatic increase in liquidity, which has been linked to inflationary pressures and economic instability.
🏷️ Entities Mentioned
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