Central Bank of Iran Reports 25% Growth in Liquidity

The CBI’s latest report shows a 25.1% growth in liquidity by the end of third month of the calendar year to June 21 compared to the corresponding month last year. 

Liquidity stood at 197, 99.1 trillion rials ($176.7 billion) in the month, also indicating a 5.2% rise compared with the last month of previous fiscal year (ended March 19, 2019). 

The regulator reported an annual liquidity growth of 23.1% for the final month of last year when liquidity was 18,828 trillion rials ($168.1 billion), according to Financial Tribune.

It should be noted that the latest growth rate is 0.1% lower than the figure for a month earlier (25.2%). However, it still is significant taking into account the bigger picture and considering several bouts of decline in the pace of liquidity growth.  

Earlier reports said although liquidity was growing at a regular pace, the CBI had managed to limit its growth for a few months.

Of the total liquidity, the share of money turnover in the banking system was 3,108.7 trillion rials ($27.7 billion) by the end of reviewed month, indicating 50.9% rise year-on-year and up 9% compared to the end of the last fiscal year. 

Additionally, the value of near-money amounted to 16,690.4 trillion rials ($149 billion), registering 21.2% hike YOY and 4.5% growth compared to the same month last year. 

The total value of banknotes and coins in circulation was 502.2 trillion rials ($4.4 billion) which indicates a 23.7% annual hike and 8.3% fall compared to data for the end of last year. 

Asset Growth 

Total assets in the banking system, including foreign assets plus government and non-government debt to lenders, reached 43,522.5 trillion rials ($388.5 billion) during the month. 

The figure shows 20.7% growth YOY while remaining unchanged compared to last yearend. 

Banks had more than 9,245.6 trillion rials ($82.5 billion) in foreign assets -- up 12.9% annually and a subtle 0.8% growth compared to the end of the last fiscal year.

The government sector, including government and state-owned companies, had 3,476.4 trillion rials ($31 billion) in debt to banks up until June 21 indicating 25.7% annual growth. 

Debt of non-government banks reached 13,475 trillion rials ($120.3 billion) during the period, showing a 21.9%  annual hike.

Data spoke of 1.5% annual decline with regard to CBI’s foreign assets during the month. The regulator had 4,527.4 trillion rials ($40.4 billion) in foreign assets, also down 2.7% compared to last month of the previous year. 

The value of banknotes and coins held as CBI assets was 32.5trillion rials in the same month, down 23.7% compared with the same month last year and up 50.5% compared to the last yearend.  

Total government debt to CBI rose to 1,009.7 trillion rials ($9 billion) to record 64.3% annual growth. 

However, banks’ debt to CBI by June 21 indicated an annual decline of 3.7% and a 2.6% fall compared to the last calendar year.

Banks owed 1,345.5 trillion rials ($12 billion) to the central bank until the month.   

Commercial and Specialized Lenders 

By June 21 commercial banks had 5,783 trillion rials in assets that were 17.7% higher than the figure reported for the same month last year. 

Likewise, the value of assets held by specialized banks stood at 6,211 trillion rials, indicating a 13.5% annual growth. 

Aggregate value of foreign assets held by commercial banks stood at 563.1 trillion rials, indicating a 1.3%  annual increase and 1.8% fall compared to the last yearend. 

Likewise, total value of foreign assets held by specialized banks reached 1,116 trillion rials by June 21, indicating an annual increase of 28.7%.