Iran’s Money Supply Exceeds 4 Quadrillion Tomans; Expert: This is the Result of a ‘Corrupt Economy’
An economic expert, in an interview with Voice of America, attributed the surge in Iran’s money supply beyond the 4 quadrillion toman mark by the end of Shahrivar 1400 to Iran’s sick and corrupt economy.
According to the Central Bank of Iran’s announcement, by the end of Shahrivar of the current year, the country’s money supply stood at over 40 trillion and 676 billion rials.
Based on this report, this figure represented a 40.5 percent increase compared to Shahrivar 99. Additionally, the volume of money supply in last Shahrivar was 2 trillion and 895 billion tomans.
Meanwhile, the government’s economic coordination headquarters decided on Tuesday, Aban 18, that the Ministry of Jihad Agriculture should announce food prices “on a daily basis” through the media, and that citizens and consumers should monitor prices “directly” by purchasing items at the announced prices and “any violations should be dealt with.”
In this context, Iranian users on social networks are speaking about the expansion and prevalence of poverty:
چرا رومون نمیشه از فقری بگیم که در خونه همه مون رو زده و عنقریبِ که همه زندگیمون رو با خودش ببره؟ما فاصله زیادی با فاجعه نداریم، بیاید حرف بزنیم، بیاید بگیم که همه مون می بینیم لباسی تن پادشاه نیست. خجالت رو کنار بذاریم.
- Economic Expert: Money Supply Has Gone Everywhere ‘Except the Production Sector’
Reza Ghaibei, an economic journalist, in an interview with Voice of America’s Persian service, stated that inflation has a direct relationship with money supply.
He emphasized that approximately 10 percent of the 4 quadrillion toman money supply was used to cover budget deficits, and the rest “stems from Iran’s sick and corrupt economy.”
According to him, when the volume of money supply in an economy rises, it means the velocity of circulation increases, and as a result, the supply and distribution cycle faces problems and trends toward inflation and price increases.
This economic analyst, noting that “over the past year and a half when money supply growth has accelerated, inflation growth has also accelerated,” stated that money supply has gone everywhere except the production sector.
According to Ghaibei, a large portion of this money supply “is in the hands of banks,” and they, through their subsidiary companies, instead of providing facilities to production units, engage in speculation in the market and channel liquidity into currency, coin, and housing markets.
Ghaibei says this causes chaos and disorder in those markets, and this is a bitter development occurring in the country’s economy, for which no solution has yet been considered.
