New Report: Dramatic Growth in Liquidity and Ibrahim Raisi’s Government Debts to Central Bank
Despite Ibrahim Raisi’s government promises to halt borrowing from the Central Bank, new official statistics show this process has continued, with liquidity jumping approximately 70 trillion tomans from the start of the thirteenth government in August of last year through February of the same year.
A new Central Bank report released on Monday, April 19, shows that Ibrahim Raisi’s government has borrowed more than 10 trillion tomans from the Central Bank since taking office in August of last year through February of that year, with the volume of government debts to the Central Bank reaching approximately 212 trillion tomans.
The volume of government debts to the Central Bank in February of last year showed 42 percent growth compared to February 1399 (2021).
This comes as Ibrahim Raisi promised at the start of his government in August of last year that the government’s borrowing process from the Central Bank, which leads to increased liquidity and inflation, would be halted.
Government debts to the Central Bank have nearly doubled from February 1398 (2019) to February of last year. Over the past three years, approximately one-third of the government budget has consistently faced deficits and has been financed through borrowing; a matter that has fueled runaway liquidity and inflation in the country.
Based on Central Bank statistics, liquidity peaked at 4,624 trillion tomans in February of last year. In the thirteenth government, more than 70 trillion tomans was added to the country’s liquidity; in other words, during seven months of Ibrahim Raisi’s government, liquidity in the country increased by 18 percent.
Raisi’s government had promised to control liquidity in the country. In recent months, government officials have stated that the country’s high liquidity and inflation growth resulted from the performance of the previous government, whose effects have continued until now, and the results of the thirteenth government’s performance in controlling liquidity and inflation will show their effects in the future.
Liquidity is one of the most important factors in inflation. Central Bank statistics show that liquidity in the country increased nearly 40 percent from February 1399 (2021) to the corresponding month of last year.
Another section of the Central Bank report addressed the country’s external debt situation.
According to this report, Iran’s foreign debt in February of last year reached 8 billion 885 million dollars, with 2.6 billion of it due in the short term and the remainder in the medium and long term.
Iran’s foreign debts in February of last year showed no significant change compared to February 1399 (2021).
Source: Radio Farda
