According to the Governor of the Central Bank of Iran (CBI) Akbar Komeijani, the country’s liquidity registered 39.1 percent growth in the 12-month period ended on August 22, IRNA reported.

“Banks need to take the liquidity management and growth control of their balance sheets seriously; since it affects macroeconomic variables such as liquidity and inflation in the long run,” Komeijani said in a meeting with the managing directors of the country’s banks.

He called for serious measures to be taken by the banking system to manage liquidity and control overdrafts, noting that if the banking system does not have the necessary control over its overdrafts, the CBI will have to take precautionary and regulatory measures.

Komijani stated that so far, the government has offered Islamic financial bonds in 17 stages, and specified: “during these offerings, a total of 322 trillion rials (about $3.14 billion) worth of such bonds have been sold by the Central Bank brokerage.”

In this regard, the necessary adjustments have been made regarding the bond yield rates, in collaboration with the Ministry of Finance and Economic Affairs, he added.

Komeijani had previously said the CBI was going to take all the necessary measures for preventing liquidity growth which will consequently lead to inflation.

Speaking in a meeting with the managers of the country’s banking system in early August, the CBI governor had pointed to the sanctions and the budget deficit as the main reasons for the liquidity growth in the country, saying that liquidity growth would lead to inflation and the decline in the value of the national currency which will, in turn, affect major medium- and long-term economic decisions in the country.

The official had put the country’s liquidity growth in the 12-month period to June 21, at 39.4 percent, which shows an increase of 5.2 percent compared to the growth in the same period last year.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Head of Iran Chamber of Cooperative Bahman Abdollahi says the major problem on way of cooperatives is shortage of liquidity and it has slowed down activities of the cooperatives in the country.

During meeting with minister of industry, mine and industry, Mr. Abdollahi highlighted major problems on way of activities of the cooperatives sector, adding that in this critical economic condition, the cooperatives sector and private sector can play key role.

He went on to say that although the cooperatives economy has been stipulated in the Constitutions, this sector has been unable to gain its 30 percent of its share from the national economy and in the best and optimistic condition, its share from the national economy may reach 15 percent.

Abdollahi noted that in the current sanctions era and restrictions, the major problem on way of the cooperatives is shortage of liquidity due to the rise in the price of forex and it has increased the problems of activists in the cooperatives sector.

He also criticized the ministry for not issuing license for distribution of tires for heavy vehicles. He added that those tires have been kept in warehouses of the Customs Office for about six months and no license is issued for their distribution.

He also criticized the ministry for constant changes in the regulations which risk investment or trade.

Abdollahi also called for more cooperation between the chamber and the ministry.

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He went on to say that the reduced import of products into the country seems to be related to the decreased import of Completely Knocked-Down (CKD) products from China, France and South Korea.

TCCIMA Chairman Khansari pointed to the liquidity rate and added, “in the report released by the Central Bank of Iran (CBI), liquidity rate in the country has added by 25 percent during 12-month period ending August 21 while money share of liquidity has increased from 12 to 15 percent at large.”

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He referred to supplying the required liquidity for production units, which incurred losses due to forex rates fluctuations, besides supplying required resources for importing basic goods as other major targets of the CBI.

CBI has been successful to control forex market and accordingly, economic indices are improving, he said, “Unemployment rate and inflation rate are cooling down.”

“Thanks to our exporters, the country’s reliance on oil revenues have been reduced,” he noted.

“In the past Iranian year (ended March 20. 2019), $42 billion was earned to supply required goods via imports and the figure stood at $12 billion in the past 3.5 months,” Hemmati added.

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The CBI announced that the liquidity figure shows 22.3 percent growth in comparison with the same period in the preceding year, IRIB news reported on Sunday.

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According to a report released by the Central Bank of Iran (CBI), liquidity stood at 13.66 quadrillion rials (about $340.05 billion) in the said month.

Liquidity in Iran witnessed a 2.5-fold rise during the past four years, IRIB news quoted Hamidreza Hajibabaie, the chairman of parliament (Majlis) ad hoc committee for reviewing the Sixth Five-Year National Development Plan (2016-2021), as saying in February 1st.

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