Money Creation by Banks Under Strict CBI Control

September 30, 2021

M oney issuance by banks is under the stringent oversight of the Central Bank of Iran, the CBI’s head of monetary and credit operations said.

In a talk with state TV, Mohammad Nadali said the majority of money supply is created mainly by banks and as a result of the CBI’s monetary operations.

“A big portion of money is controlled by banks and money circulating among the people accounts for barely 2% of the liquidity in the financial system,” he was quoted as saying by the CBI website.

Put simply, money creation, or money issuance, is the process by which money supply in a financial system is increased.


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