Decrease of 11 percentage points of the monetary base
According to the Iran Economist, the monetary base, which is also called strong money, is the sum of banknotes, coins and bank deposits with the Central Bank. In other words, the monetary base is a resource that the central bank publishes and provides to commercial banks in the economic cycle, and banks increase the amount of money with the help of these resources and by creating bank money.
Governments try not to use high-pressure money and central bank resources because the growth of the monetary base is directly related to inflation. According to many experts, any government that can control the monetary base and liquidity will also control inflation.
A review of statistics shows that in the previous government, despite the slogan of banning the use of banking resources and controlling the growth of the monetary base, but we saw the monthly growth of the monetary base and liquidity and, consequently, inflation.
The growth of the monetary base reached its highest level in the last year of Rouhani’s government, so that in the 12 months ending July 1400, this index was 42.6%, which is the highest figure in the last decade.
As mentioned, the growth of the monetary base in the 12 months ending July 1400 was unprecedented, but with the efficiency of the 13th government and its emphasis on non-borrowing from the central bank, the growth rate of the monetary base was controlled and in August 1400 a half percent decrease compared to July and September. It had a decrease of 2.6 percent compared to August.
According to the statistics announced by the Central Bank as a reference for announcing economic statistics, the downward trend of monetary base growth was repeated in the first autumn quarter of the 13th government. Accordingly, the monetary base in October, November and December was 36.4%, 35.8% and 37.8%, respectively.
After about eight months of the current government and the implementation of appropriate policies to control the monetary base, the index was 35.5 percent in the 12 months to December, 33.2 percent in February and 31.4 percent in March last year.
According to the report, the growth rate of the monetary base, which reached 42.6% in July 1400, coinciding with the latest statistics announced by the previous government, decreased by 11.2 percentage points to 31.4% in March 1400, which indicates the correct orientation of the bank. Central and the thirteenth government in this area.
