|Central bank governor: Liquidity growth rate declines in Iran||
TEHRAN - Proper policies of the central bank led to the decrease of liquidity growth rate in Iran in the past calendar year compared to its preceding year, Central Bank Governor Mahmoud Bahmani stated.
The liquidity growth rate fell to 19.4 percent in the year ended on March 19, 2012 compared to 25.2 percent in the year before, the ISNA News Agency quoted Bahmani as saying.
Liquidity in Iran amounted to 3.587 trillion rials (some $ 292 billion) by the end of the first calendar month of Farvardin (April 19), showing $5.3 billion increase compared to the previous month, according to the IRNA News Agency.
The value of liquidity hit 3.52 trillion rials (some $287 billion) in the past calendar year, up 19.4 percent year on year, an official with the Central Bank announced on May 4.
Peyman Qorbani added that the rise was favorable considering the implementation of the subsidy reform plan.
The subsidy reform plan put into place by Iran's government created $13 billion more in liquidity than was anticipated, head of the parliament (Majlis) Economic Committee Gholamreza Mesbahi Moqaddam said.
The subsidy reform plan pays out $37 to Iranians while eliminating subsidies for fuels and some commodities. The plan, which was supposed to pay for itself, has a $16 billion deficit. Recently, the Iranian government transferred about $23, to Iranians' accounts for the second phase of the program without approval from the Majlis.
When the plan started in December 2010, it was expected to cause about $32 billion in liquidity, Moqaddam said. But greater demand for the cash subsidies and the government's money borrowed from the central bank to pay for the subsidies led to $45 billion in liquidity.
Subscribe to our RSS feed to stay in touch and receive all of TT updates right in your feed reader