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Three-minute read<\/em><\/strong><\/p>\n The exponential rise in Iranian banks’ debt to the Central Bank over the past two years rings alarm bells for the country’s economy, a result of unchecked money printing and a lack of financial oversight.<\/p>\n Iran has been grappling with serious economic challenges in recent years, and one of the most pressing issues has been the surge in money printing and banks’ indebtedness to the Central Bank. The escalating debt of banks to the Central Bank over the past two years has become a cause for concern, indicating deep-seated problems within the country’s financial system.<\/p>\n Recent reports show that Iranian banks’ debt to the Central Bank has grown by an alarming 100 percent<\/a>. This debt, which stood at zero percent in the month of August 2023, surged to 98.3 percent by 2023, during Ebrahim Raisi’s tenure as the regime\u2019s president. Moreover, these debts accounted for 41.8 percent of the monetary base growth<\/a>, showing a worrying trend.<\/p>\n These figures underscore the liquidity challenges faced by banks. Recently, the Central Bank published statistics on the monetary base until the end of February, indicating that the monetary base had reached 1,048 trillion tomans, of which 682 trillion tomans, or 65.1 percent, belonged to banks’ debts to the Central Bank.<\/p>\n The year-on-year growth in banks’ debt to the Central Bank in February increased by 98.3 percent<\/a> compared to the same month last year.<\/p>\n #Iran<\/a> News in Brief — NCRI-FAC (@iran_policy) August 4, 2023<\/a><\/p><\/blockquote>\n\n
Shedding light on Ebrahim Raisi government's disastrous #economic<\/a> records, former Central Bank Chief Abdolnaser Hemati said:
During the first 2 years of Raisi\u2019s term:
– Money printing increased by 83%
– Liquidity surged by 73%
– IRR against USD fell by 95%
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