At a meeting of the administration’s economic coordination headquarters on Tuesday evening, chaired by President Ebrahim Raisi, the CBI presented a report showing that the monthly increase in money supply has started a downward trend.
According to the report, the rate of increase in money supply during the Iranian month of Aban (23 October – 21 November) decreased by 2.1% compared to the previous month.
During the meeting, Raisi ordered all responsible organizations, in particular the Ministry of Economy, the Budget and Planning Organization and the Central Bank of Iran, to continue their efforts to cap the rate of increase in the money supply.
Economists argue that if the money supply grows faster than real output, inflation will occur. In other words, money becomes worthless if too much is printed.
Last month, CBI chief Ali Salehabadi said the process of repatriating foreign currency earned through the export of Iranian commodities had improved, resulting in relative stability in the foreign exchange market.
The main banker said that the currency generated by the exports of oil, natural gas and gas condensate is also supplied to the domestic market.
Days after taking office in August, Raisi stressed the need to remove obstacles to the activities of Iranian exporters, saying plans must be formulated to remove barriers and motivate increased exports.