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Iran experiences modest increase in liquidity

Iran Materials 15 March 2025 17:45 (UTC +04:00)
Elnur Baghishov
Elnur Baghishov
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BAKU, Azerbaijan, March 15. Liquidity in Iran at the end of the 11th month of the current Iranian year (February 18, 2025) has increased by nearly 28 percent compared to the same period last year (February 19, 2024).

Data obtained by Trend from the country's Central Bank indicates that the country's liquidity reached around 99.4 quadrillion rials (about $175 billion) by February 18, 2025. This marks a sharp rise from 77.8 quadrillion rials (about $133 billion) at the same point in the previous year.

The report further indicates that money accounted for 25 quadrillion rials (about $44 billion) of the liquidity, reflecting a 30 percent increase compared to the previous year. At the end of the same period in 2024, money’s share of liquidity was about 19.3 quadrillion rials (about $33.9 billion).

The statistics also show that quasi-money, which includes savings and deposits, contributed 74.3 quadrillion rials (about $131 billion) to the total liquidity, a 27 percent increase compared to the prior year. At the end of the same period in 2024, quasi-money was around 58.5 quadrillion rials (about $103 billion).

The data suggests that since May 22, 2019, the continuous decline in liquidity has been a result of the local currency program regulated by the Central Bank of Iran, which indicates that the policy is being implemented effectively.

Governments always seek to channel the growth of liquidity in the right direction. If liquidity growth is channeled in the right direction, it leads to economic growth, increased employment, and reduced inflation. Iran's failure to channel liquidity in the right direction has led to an economic downturn and has led to higher inflation.

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