CBI to take all necessary measures for curbing liquidity, inflation: governor
TEHRAN – Central Bank of Iran (CBI) Governor Akbar Komeijani has said the bank will take all necessary measures to prevent the growth of liquidity which will therefore lead to inflation, IRIB reported.
Speaking in a meeting with officials of the country’s banking system on Tuesday, Komeijani highlighted sanctions and the budget deficit as the main reasons for the growth of liquidity in the country, saying that the growth in liquidity will lead to inflation. and the fall in the value of the national currency which, in turn, will affect the country’s major medium and long-term economic decisions.
The official estimated the country’s liquidity growth in the 12-month period to June 21 at 39.4%, which shows a 5.2% increase over the growth in the same period of the year. last.
The main reason for this situation was the government’s use of central bank resources which amounted to 560 trillion rials (about $ 13 billion), he said.
The Governor of the CBI further noted that within the framework of open market operations and in order to manage liquidity and guide the interbank interest rate, the Central Bank has taken the necessary measures to attract liquidity to this market. market since the second half of the Iranian calendar month of Khordad (early June).
Cash growth has been inevitable in Iran given the coronavirus outbreak and the government’s injection of cash to support households and businesses.
In February, the CBI announced that the country’s liquidity had reached 31.3 quadrillion rials (approximately $ 745.2 billion) in the first nine months of the previous Iranian calendar year (March 20-December 20, 2020). , to register a growth of 26.6% compared to the figure for the end of the previous year.
EF / MA