Banks' foreign assets posted 61% growth on year-on-year basis, increasing from 12,562.1 trillion rials ($46.5b) in August 2020 to reach 20,307 trillion rials ($75.2b) by August 2021.
Foreign assets of banks increased almost 30% in five months since the beginning of current fiscal year in March, according to data released by the Central Bank of Iran.
Government and state-owned companies held 6,557.9 trillion rials ($24.2b) in debt to banks by the end of the fifth calendar month, up 35% compared to the corresponding period last year.
Non-governmental sectors owed 27,590.1 trillion rials ($102b) to banks during the period, registering an annual 35% increase.
Commercial banks’ total assets stood at 11,941.4 trillion rials ($44.2b) in the mentioned period, showing a 60% rise compared to August 2020.
Foreign assets owned by commercial banks were worth 1,951.4 trillion rials ($7.2b), recording a whopping 159.2% increase compared to the year earlier.
Non-governmental sector’s liabilities to commercial banks stood at 4,259.1 trillion rials ($15.7b) registering nearly 40% growth YOY.
Five state-owned specialized banks held assets worth 12,365.1 trillion rials ($45.7b) by Aug 22, rising 44.7% compared to the same period a year earlier. Their foreign assets amounted to 3,379.6 trillion rials ($12.5b), up 77.8% compared to last year.
CBI Assets
Total CBI assets reached 10,349.7 trillion rials ($38.3b) in mid- August, rising from 8,637.9 trillion rials ($31.9b) in the same period last year, up 19.8 %.
Foreign assets accounted for 6,556.7 trillion rials ($24.2b) of the bank’s total assets, indicating 16.4% increase compared to the same month the previous year.
Increase in banks’ foreign assets is seen as the main driver of expansion of money supply in the past few months. Majority of assets owned by the CBI and banks are blocked overseas and are not accessible due to the US sanctions.
Broad money supply stood at 39,214.3 trillion rials ($145b) by Aug. 22, 39.1% higher on an annualized basis. It climbed 12.8% in the first five months of the current fiscal year.
CBI said assets in banknotes and coins on Aug.22 stood at 16.4 trillion rials ($60.7 million), which is 19.2% lower compared with a year earlier.
Debts of banks to CBI accounted for 1,242.4 trillion rials ($4.6b) of CBI assets in the 12 months to Aug.22. Banks’ debt to the CBI increased 6.1% in the course of five months since the beginning of the fiscal year.
Banks and credit institutions had 4,339.6 trillion rials ($16b) in deposits with the CBI in the said period, posting 14.6% growth on an annualized basis.