|Liquidity in Iran up 30.5% y/y: CBI||
TEHRAN - Liquidity in Iran rose 30.5 percent in the 12-month period that ended on the last day of the Iranian calendar month of Khordad (June 21), compared to the same period last year.
According to a recent report by the Central Bank of Iran (CBI), the value of liquidity hit 6,170 trillion rials (about $199.3 billion), an increase of 1,379 trillion rials (about $44.5 billion) year on year.
In October 2013, the CBI Governor, Valiollah Seif, said the Central Bank of Iran will focus on controlling liquidity and bringing down inflation as President Hassan Rouhani has agreed to separate monetary and fiscal policies, giving the central bank more independence.
Seif said President Hassan Rouhani inherited an economy in recession as international sanctions against the country weakened its currency and accelerated inflation to about 40 percent in September 2013.
“Under the previous administration, the allocation of credit to many sectors was not based on the analysis of experts,” Seif said, adding, “There was a housing project for the poor, and a lot of resources were allocated to that, about 40 percent of the liquidity volume.”
The central bank’s main priority is to reduce inflation and money supply, even as the economy is struggling with a recession, Seif said. “We are now facing a stagflation,” he said. “Expansionary monetary and fiscal policies will not help the growth.”
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