BAKU, Azerbaijan, June 4. Necessary steps should be taken to reduce liquidity in Iran, a member of Iranian parliament and the spokesman for the parliament's Economic Committee Gholamreza Marhaba told ILNA, Trend reports.
According to Marhaba, there are currently no effective steps to reduce liquidity in Iran. Because if liquidity decreases in the country, its effect should be observed in reducing inflation rate.
The spokesman added that liquidity in Iran is expected to exceed 50 quadrillion rials (about $1.2 trillion) for the current Iranian year (March 21, 2022 through March 20, 2023).
“It is true that the Iranian government has begun to implement a number of economic programs. However, due to the implementation of the mentioned programs has just begun, it is not yet possible to comment on the government's role in managing liquidity for now,” he said.
As for reasons for the rapid growth of liquidity, the MP said that a number of factors play a role in increasing liquidity.
“These are the government's borrowing from the Central Bank of Iran (CBI) and other banks, the issuance of fiat money, the lack of balance of payments in banks, the rapid growth of money circulation, the lack of liquidity in the investment and capital markets,” the MP noted.
According to the report of CBI, liquidity in Iran amounted to 48 quadrillion rials (about $1.15 trillion) at the end of the first month of the current Iranian year (March 21 through April 20, 2022), which is a decrease of 0.2 percent compared to the end of the 12th month of last Iranian year (February 20 through March 20, 2022).
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