Iran’s Economy Monetary Inflation; a trinity of causes!
– “Project financing policies”, “Government’s debt to central bank on budget deficit” and “Private sector being under pressure” are the triple factors influenced banking resources and made monetary base of Iran’s Economy impacted directly. This is while the state vowed for a decentralization from banks and moving towards the debt market. Stats show a 41% growth in government debts over the past 7 months that led to an expansion in monetary base. Now banks are obligated to finance prime projects with facilities in 15 working days. 79.1% of project financing fueled from money market while only 19.5% have been channeled to debt market.