8% decline registered in monetary base growth rate
CBI: Liquidity growth rate reaches 27.8%
The Central Bank of Iran (CBI) announced that liquidity volume in Bahman, the eleventh month of the Iranian calendar year of 1403 (Jan. 20-Feb. 18, 2025) increased by 26.2% compared to the end of 1402 (March 19, 2024), while the 12-month liquidity growth rate in Bahman reached 27.8%.
Liquidity volume in Bahman amounted to 99,420.1 trillion rials, reflecting a 26.2% growth compared to the end of the year 1402. The 12-month liquidity growth rate in Bahman of the current year stood at 27.8%, marking a 0.3 percentage point increase compared to the same period in 2024 (27.5%).
Monetary base
The monetary base in Bahman reached 12,729.4 trillion rials. The 12-month growth rate of the monetary base in the eleventh month of the current Iranian year was 22%, showing an 8 percentage point decline compared to the same period in 1402 (30%). Additionally, the monetary base in the month to Feb. 18, 2025 grew by 16.6% compared to the end of the previous Iranian year.
In line with the General Assembly directive of the CBI (1401) regarding the revaluation of foreign assets (based on their quality) and foreign liabilities in 1401 (2023), the CBI’s financial statements for the end of that year were revised and adjusted.
Furthermore, in accordance with the International Monetary Fund’s Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG, 2016) and considering the principle of economic territory, the classification of monetary base components was reviewed to better align with international standards.
In the 11 months leading to February 2025, the CBI’s net foreign assets were the primary driver of monetary base growth, contributing 88 percentage points to the 11-month growth. The main factor behind the increase in net foreign assets was the rise in the exchange rate.
The second-largest contributor to monetary base growth by the end of Bahman (Feb. 18, 2025) was the CBI’s claims on banks, accounting for 17.9 percentage points.
Government sector, other factors
From Bahman of 1403 compared to the end of 1402, the net debt of the government sector to the CBI contributed 8.8 percentage points to the 16.6% growth in the monetary base during that period.
The increase in the government sector’s net debt to the CBI was primarily due to higher claims by the CBI on the government.
The only factor reducing monetary base growth by the end of Bahman 1403 compared to the end of the Iranian year 1402 was the CBI’s net other items, which accounted for -98.1 percentage points. Additionally, the liquidity increased by 8.3% by the end of Bahman (Feb. 18, 2025) compared to the end of 1402, reaching 7.81.