TEHRAN – Based on the statistics released by the Central Bank of Iran (CBI), the total volume of the country’s monetary base in the Iranian month of Ordibehesht 1385 (April 21-May 21, 2006) has observed a 10.3 percent reduction over Esfand 1384 (February 20-March 20, 2006), the Persian service of Fars News Agency reported here on Wednesday.

The total from March 21 to May 21, 2006, was registered at Rls.197,867b ($22b) while the volume in Ordibehesht 1384 hit Rls.145,924b ($16.3) figure.

According to experts, controlling and curbing the increasing growth of monetary base are the most effective method in keeping inflation in check, and it seems the monetary policies are directed to this end, the report indicated, adding the inflation rate, now at 10.4 percent, may follow a downward trend hereafter.

Also known as money of high expansive power, the money base is a government liability, currency, and bank reserves that roughly define the sum of bank reserves and currency held by the public.