Money Supply Increase Rate Dropping in Iran
TEHRAN (Tasnim) – A report by the Central Bank of Iran indicates that the rate of monthly increase in the money supply has begun to fall.
In a meeting of the Administration’s Economic Coordination Headquarters on Tuesday evening, chaired by President Ebrahim Raisi, the CBI gave a report showing that the monthly increase in the money supply has started a downward trend.
According to the report, the money supply increase rate in the Iranian month of Aban (October 23 – November 21) has decreased by 2.1 percent compared to a month earlier.
In the meeting, Raisi ordered all organizations in charge, specifically the Ministry of Economy, the Budget and Planning Organization, and the Central Bank of Iran to keep efforts to cap the rate of increase of money supply.
Economists maintain that if the money supply increases faster than real output, inflation will occur. In other words, money becomes worthless if too much is printed.
Last month, the CBI chief Ali Salehabadi said the process of repatriation of foreign currency earned from the export of Iranian commodities has improved, resulting in relative stability in the currency market.
The top banker said the currency generated from the exports of oil, natural gas and gas condensates was also being supplied to the domestic market.
Days after taking office in August, Raisi emphasized the necessity for the removal of obstacles to the activities of Iranian exporters, saying plans must be formulated to eliminate the barriers and provide motivation for the enhancement of exports.
