Reduction of liquidity growth rate to 32% in February 1401

According to the report of Poli-Mali News, the Central Bank issued a response in response to the report of Dunya Ekhtet newspaper titled “Inflation Sensor Siren”. In this answer, referring to the central bank’s measures to control the fundamental factors of inflation and reviewing the latest statistics of monetary indicators, it is stated:

The state of economic indicators and their changes have always been of interest to the country’s economic policymakers, and this year, inflation control programs have been designed and are being implemented in the framework of the year’s slogan “inflation control and production growth” with the cooperation of all relevant institutions in the 13th government.

It is necessary to pay attention to the monetary indicators mentioned in the “Duniya Ekhtaz” newspaper as indicators of inflationary expectations (money growth and its share of liquidity), since the second half of last year, a set of various factors (mainly affected by the publication of negative news) has led to uncertainty and the formation of negative expectations regarding the changes in the foreign exchange market, and as a result, the increase in the exchange rate of the informal market and the escalation of inflationary expectations, which has led to the growth of money and an increase in its share of liquidity.

In any case, according to the existing conditions, the monetary policy maker in line with managing inflationary expectations, controlling inflation and reducing liquidity, the policy of interest rate reform (approved by the Money and Credit Council in the meeting dated 09/22/1401) and its implementation from 10 11/11/1401 along with pursuing the precautionary policy of controlling the growth of the balance sheet of the banking network, increasing the legal deposit ratio at the level of the banking network by half a percentage point (paragraph “3” of the 49th minutes of the meeting dated 10/03/1401 of the central bank’s executive board) and Jedi put on the agenda to deal with delinquent and unhealthy banks, which has followed the continuation of the decreasing trend of liquidity growth in the last months of 1401 as in the previous months (the liquidity growth rate from 39.7% at the end of February 1400 during a downward trend to 32% It has decreased at the end of February 1401).

Also, among other actions of the government and the central bank in order to stabilize the economy are the supply of currency in exchanges and banks, the supply of coins in the commodity exchange, the establishment of a currency and gold exchange center with the aim of establishing price authority, increasing the volume of official transactions and ease of access for market applicants. He pointed out currency and gold and the supply of foreign currency required for the import of basic goods in the NIMA system, the adaptation of the country’s currency and trade map in order to manage the flow of foreign exchange resources and expenses, etc.

It is expected that with the recent policy actions of the Central Bank and also positive developments in the field of the country’s foreign policy, in the coming months, stability in the foreign exchange market will increase and inflation expectations and liquidity will decrease to their historical trends.