Iran's Monetary Base Reaches 2,196 Trillion Tomans; 836 Trillion Increase in 1404

The monetary base not only grew by the end of 1404, but its internal composition also conveyed an important message from behind the scenes of Iran's monetary policy. The latest Central Bank data shows that the monetary base reached approximately 2,196 billion rials by the end of Esfand and increased by around 836 billion rials over the course of one year.

• At first glance, this figure could be a sign of severe pressure from high-powered money on the economy; however, dissecting its components reveals that the path of monetary base growth has not been straightforward and uniform.
• From the resource side, the net foreign assets of the Central Bank, with a sharp jump, have been the most important force driving monetary base growth, and the Central Bank has attributed much of this increase to exchange rate appreciation.
• In contrast, the net of other Central Bank items and Central Bank claims on banks have played a reducing role and prevented the expansionary effect of foreign assets from being fully reflected in the monetary base.. | TradeNews Full Report by Ehsan Keshavarzi

reports: Monetary base reached 2,196 billion rials / Monetary base increased by 836 billion rials in 1404; Central Bank's foreign assets became the engine of monetary base growth