Liquidity hits $322 billion in Iran

Iran Materials 25 September 2012 18:42 (UTC +04:00)

Azerbaijan, Baku, Sep.25/ Trend F.Milad/

Liquidity in Iran is now around 3.95 trillion rials ($322 billion) compared with 650 billion rials ($53 billion) seven years ago, the Fars news agency quoted Iran's Majlis Speaker Ali Larijani as saying.

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 said the subsidy reform plan put into place by the government has created $13 billion more in liquidity than was anticipated.

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.