|Liquidity in Iran amounts to $201b: economy minister||
TEHRAN - Liquidity in Iran has reached 500 trillion rials (about $201 billion based on the USD official exchange rate of 24,800 rials), Iranian Finance and Economic Affairs Minister Ali Tayyebnia said on Saturday.
He also said that the inflation rate for the 12-month period ended the sixth calendar month of Shahrivar (September 22) hit 40 percent.
The Central Bank of Iran has reported that liquidity has grown over five folds since seven years ago.
Head of Parliamentary Economic Committee Gholamreza Mesbahi Moqaddam has said the subsidy reform plan put into place by the government has created $13 billion more in liquidity than was anticipated.
But, President Mahmoud Ahmadinejad has rejected such claims about the effect of implementing the subsidy reform plan in increasing liquidity.
The subsidy reform plan pays $37 to Iranians, eliminating subsidies for fuels and some commodities.
"When the plan started in December 2010, liquidity was expected to stand at about $32 billion," Moqaddam said.
However, a greater demand for the cash subsidies and the government's debt to the central bank led to $45 billion in liquidity.
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