Liquidity rises 17.1%

(Tuesday, November 10, 2020) 09:23

TEHRAN - Iran’s liquidity reached 28.958 quadrillion rials (about $689.49 billion) in the first six months of the current Iranian calendar year (March 20-September 21), to register a 17.1-percent growth from the figure for the end of the past year.

According to the data released by the Central Bank of Iran (CBI), the country’s liquidity had registered 36.2 percent growth in the previous year’s first half compared to the preceding year’s same period.

As reported, the CBI’s foreign assets in the sixth Iranian calendar month of Shahrivar (August 22-September 21) reached 5.555 quadrillion rials (about $132.2 billion), registering 3.5 percent growth compared to the figure for the end of the previous Iranian calendar year.

The CBI’s previous report published in July had put the country’s liquidity at 26.514 quadrillion rials (about $631.28 billion) in the first quarter of the current Iranian calendar year (March 20-June 20), 7.3-percent more than the figure for the end of the past year.

Based on the CBI report, the liquidity growth has been inevitable in the country considering the outbreak of the coronavirus and the injection of liquidity by the government for supporting households and businesses.

As reported, considering the CBI’s monetary policy frameworks and in line with the bank’s inflationary targets, the liquidity growth is expected to return to its normal trend in the coming months.

In mid-September, board members of the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) had criticized the unbridled liquidity growth in the country claiming it to be causing disruption in many economic and industrial sectors.

During the 16th meeting of the TCCIMA board of representatives, the TCCIMA Head Masoud Khansari noted that currently, liquidity is the most important factor that is disrupting the country’s economic system.

According to Khansari, if the current trend continues, the liquidity growth will reach 32 percent and 8 quadrillion rials (about $190.4 billion) will be added to the country's liquidity by the end of the current Iranian calendar year (March 20, 2021).