Liquidity grows by 19.4 percent in Iran to reach $287 billion
Azerbaijan, Baku, May 14/ Trend F.Milad/
Liquidity in Iran amounted to 3.52 trillion rials (some $287 billion) in the past calendar year, which ended on March 19, showing 19.4 percent rise year on year, official at the Central Bank Peyman Qorbani announced on Monday.
Peyman Qorbani added that the rise was favorable considering the implementation of the subsidy reform plan, the IRNA News Agency reported.
The subsidy reform plan put into place by Iran's government created $13 billion more in liquidity than was anticipated, head of the parliament (Majlis) Economic Committee Gholamreza Mesbahi Moqaddam said, the Fars News Agency reported.
The subsidy reform plan pays out $37 to Iranians while eliminating subsidies for fuels and some commodities. The plan, which was supposed to pay for itself, has a $16 billion deficit. Recently, the Iranian government transferred about $23, to Iranians' accounts for the second phase of the program without getting approval from the Majlis.
When the plan started in December 2010, it was expected to cause about $32 billion in liquidity, Moqaddam said. But greater demand for the cash subsidies and the government's money borrowed from the central bank to pay for the subsidies led to $45 billion in liquidity.