<p dir="LTR"><span>Financial Tribune- The figure for broad money supply crossed 12 quadrillion rials ($320 billion) by Jan. 19, marking a 26% increase compared with the previous year.</span></p> <p dir="LTR"><span>In recent years, the liquidity growth ratio has hovered between 22-30%. The figure accounts for monetary base and multiplier, which in the 10-month period ending Jan. 19 grew by 17.3% and 7.4%, respectively, the website of Iran Chamber of Commerce reported. </span></p> <p dir="LTR"><span>According to the report of the Central Bank of Iran, liquidity growth was curbed during 2012-14 and dropped by nearly 8% to reach 22.3%. In this period, the makeup of monetary base and multiplier also improved. </span></p> <p dir="LTR"><span>In 2016, however, liquidity growth rate started to accelerate again. CBI has ascribed the surge to the stimulus package it released during the year.</span></p> <p dir="LTR"><span>The administration of former president, Mahmoud Ahmadinejad, started off in 2005 with liquidity at 600 trillion rials ($16 billion). When his term ended in 2013, liquidity had reached a whopping 4,920 trillion rials ($131.2 billion) to mark a disastrous average annual growth of 102.5%.</span></p> <p dir="LTR"><span>The banking system also plays a hand in money supply growth, by adding 20% to liquidity every year.</span></p> <p dir="LTR"><span>Vahid Shaqaqi Shahri, an economist, predicts that liquidity will reach 15,000 trillion rials ($400 billion) in the coming year while gross domestic product is nearly 12,000 trillion rials ($320 billion).</span></p> <p dir="LTR"><span>In other words, liquidity is growing faster than the production rate in Iran, which problem could wreak havoc on the economy. </span></p>