Private sector representatives criticize unbridled liquidity growth

September 15, 2020 - 15:16

TEHRAN – Board members of the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) on Tuesday criticized the unbridled liquidity growth in the country which is causing disruption in many economic and industrial sectors.

During the 16th meeting of TCCIMA board of representatives, the TCCIMA Head Masoud Khansari noted that currently, liquidity is the most important factor that is disrupting the country’s economic system, TCCIMA portal reported.

“In the past few months, liquidity has grown by 13.8 percent, meaning that 22 trillion rials (about $500 million) is added to the country’s liquidity every day, and in the past five months, 3.4 quadrillion rials (about $80.9 billion] has been added to the volume of liquidity,” he explained.

According to Khansari, if the current trend continues, the liquidity growth will reach 32 percent and 8 quadrillion rials (about $190.4 billion) will be added to the country's liquidity by the end of the current Iranian calendar year (March 20, 2021).

“Wandering liquidity collapses on various markets like an avalanche every day, one day the stock market, one day the housing market, one day the forex market, and in the last few days the automobile industry has also been affected,” the official regretted.

Considering the current inflation rates, the most important thing for the government to do is to prevent the liquidity from growing, he stressed.

Elsewhere in his remarks, Khansari criticized the government for the indecision for nominating the new Industry, Mining, and Trade Minister.

Addressing President Hassan Rouhani, the TCCIMA head said: “The Industry, Mining, and Trade Ministry which is currently the most important ministry in the country, has been without a minister for more than four months, and we see that no decision has been made in this regard and this has practically damaged both production and exports.”

EF/MA

Leave a Comment

5 + 8 =