According to data of Central Bank, the money that banks have created in last 20 years is twice as much as the money created by sovereignty, Hosseinzadeh Bahraini said.
News ID : 133195
IBENA- Mohammad Hossein Hosseinzadeh Bahraini, a member of t Economic Commission of Islamic Parliament, said at a conference on monetary and currency policy, saying that guidance of credit in our economy has not been properly explained. Money that banks have created in last 20 years is twice as much as the money created by sovereignty.
That is why when we talk about guidance of credit, we are faced with dozens of questions from subject of denial. While the bank needs central bank support to create money. In the past 5 years, total GDP has grown by 4.9 percent; (Cumulative growth) Liquidity has also grown by 10,000 and 250 percent, Bahraini reiterated.
This is a result of neglect of concept; guidance of credit. That is, our economy was creator of money, but because it did not get in the direction it had to take. there was no production. Instead, we created money for inflation. According to Bahraini, t movement of liquidity is the result of the will of owner of that liquidity, the member of the parliament's economic commission said.
