Page 42 - IRANRptJun22

8.1.1 Liquidity / assets
Iran’s liquidity expands to IRR18.82 quadrillion in Persian year ending March 2019
The Central Bank of Iran (CBI) has reported on July 8 rial liquidity grew 23.1% to reach IRR18.82 quadrillion (around $447bn) in the previous Persian calendar year (to March 20).
Liquidity continues to grow due to the devaluation of the rial against a basket of other currencies. With prices continuing to creep upwards, the pace of growth is likely to be higher than the CBI’s official statistics.
The share of M2 money stood at in March at IRR2.85bn (more than $67.6bn) “Quasi money” – money sitting in bank savings accounts – stood at IRR15.97 quadrillion (above $379bn) registering a growth of 19.6% y/y.
Overall, banks and financial institutions in the country are said to hold above IRR1 quadrillion in assets, which the domestic economy is struggling to reabsorb.
8.1.2 Loans
Bank lending in Iran grows 59% in first 10 months of Persian calendar year
Iran’s banks ‘lent IRR9,750 trillion to businesses in 2019-2020 Persian year’
Iran's banking system disbursed loans worth Iranian rial (IRR) 22.964 quadrillion ($86.1bn at the free exchange rate) of loans in the first 10 months of the current Persian calendar year (March 21, 2021 - January 20, 2022), marking a 59.4% y/y expansion, official news agency IRNA has reported.
Working capital loans exceeded IRR15.205 quadrillion (around $57bn), accounting for 66.3% of all the loans, it added, citing central bank data. The industrial and mining branches of Iran received more than IRR5.502 quadrillion (around $20.6bn) in working capital loans, 36.2% of the total.
In its latest reporting on loans flowing into the economy, the central bank emphasised that inflation, officially running at around 42%, needed bringing under control.
Iran’s banks lent Iranian rial (IRR) 9,750 trillion ($62.9bn at the free market rate, $232bn at the official rate) to businesses in the 2019-2020 Persian year (ended March 19), marking a rise of IRR2,012tn or 26% y/y, according to Central Bank of Iran (CBI) data published by DEN Group on April 30.
Companies across the board in Iran suffered significant losses during the Iranian calendar year, with the severe US-sanctions-triggered depreciation of the rial against hard currencies and other market impacts of the sanctions making life very tough for the business world.
The CBI said in its annual report on the performance of the country’s banks that the services sector received IRR3,285tn, or 34%, of the awarded loans. The industries and mining sector was the next biggest beneficiary, accounting for IRR3,172tn, while companies in commerce received 19% of the total. Looking at loan amounts and destinations, the CBI said companies in services received an average $5,300 at the free market exchange rate, while the average for other sectors was $3,000.
8.1.3 Deposits
Iran’s sight deposits grow at whopping 90.7% annualised rate
Sight deposits placed with Iranian banks grew at a whopping annualised rate of 90.7% in the first half of the Persian calendar year (March 20- September 21), far outstripping term deposits, the Tehran Times has reported.
42 IRAN Country Report June 2022 www.intellinews.com