Central Bank: Liquidity in Iran tops $338 billion
Azerbaijan, Baku, Dec. 29/ Trend G.Mehdi/
Liquidity in Iran hit 4.15 trillion rials (over $338 billion) in the seventh calendar month of Mehr (ended on Oct. 21), compared with 402 billion rials ($328 billion) in its preceding month, the Mehr news agency cited reports by the Central bank of Iran.
Liquidity has grown by over five folds since seven years ago, according to the report.
Meanwhile, Central Bank Governor Mahmoud Bahmani said in May that the liquidity growth rate fell to 19.4 percent in the past year, which ended on March 19, 2012, compared to 25.2 percent in preceding year.
Head of Parliamentary Economic Committee Gholamreza Mesbahi Moqaddam has said the subsidy reform plan put into place by the government has created $13 billion more in liquidity than was anticipated.
But, President Mahmoud Ahmadinejad has rejected such claims about the effect of implementing the subsidy reform plan in increasing liquidity.
The subsidy reform plan pays $37 to Iranians, eliminating subsidies for fuels and some commodities.
"When the plan started in December 2010, liquidity was expected to stand at about $32 billion," Moqaddam said.
However, a greater demand for the cash subsidies and the government's debt to the central bank led to $45 billion in liquidity.