News ID: 316961
Published: 0236 GMT October 10, 2021

Iran money supply rose 39.1% y/y in August: CBI

Iran money supply rose 39.1% y/y in August: CBI

Figures by the Central Bank of Iran (CBI) showed that money supply in the country rose by 39.1% year on year in late August to reach the equivalent of more than $142.5 billion.

CBI figures indicated that money supply reached 39,214.3 trillion rials which would be equal to more than $933.5 billion once calculated on the official exchange rate of 42,000 rials per US dollar, Press TV wrote.

Money supply increased by 12.8% compared to figures recorded at the end of the last Iranian year in late March, according to the CBI data which were covered in a report by IRNA.

Tables cited in the report showed that CBI’s net foreign assets increased by 29.3% against late August 2020 to reach 4,815.2 trillion rials ($17.5 billion).

Government debts to the CBI was 351.4 trillion rials ($1.27 billion), up by more than 256% compared to March and over 207% against August last year.

Debts owed by state-run and private banks had increased by around 6% against both August last year and March 2021 to amount to 1,242.4 trillion rials ($4.5 billion), showed the CBI figures.

Money in circulation was 819.8 trillion rials ($2.97 billion), up 17.6% against August 2020, while banks’ deposits held in the CBI rose by 47.9% year on year to top 4,339.6 trillion rials ($15.7 billion).

The figures come just days after the Iranian Ministerial Cabinet appointed a new CBI governor with a mandate to control government borrowing from the CBI.

Iran’s newly appointed chief banker Ali Salehabadi vowed he would introduce a tight monetary policy to control inflation in the country.

Salehabadi said he would prevent any further expansion of money supply in Iran while trying to stop excessive borrowing of the banks from the CBI.

“We will try to control the monetary base and prevent extra borrowing of the banks from the CBI resources in order to control the market,” said the CBI governor.

Salehabadi, 44, is the youngest ever banker in charge of the CBI. He is a financial management PhD from the University of Tehran and has served as head of the Securities and Exchange Organization (SEO) of Iran between 2005 and 2014 before becoming the CEO and chairman of the board at Export Development Bank of Iran.

A key legacy of his time as SEO head was to set up various bodies and departments in the organization, including a religious committee to check if trading complies with Islamic principles.

 

   
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