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Why Iran could be approaching hyperinflation in coming years

The asset markets in Iran have been witnessing sharp surging spikes in prices in the recent weeks and months on the back of astonishingly rising money supply.
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The asset markets in Iran have been witnessing sharp surging spikes in prices in the recent weeks and months on the back of astonishingly rising money supply. The Tehran Stock Exchange Index, with a return of more than 147%, was the best performing market, followed by the gold, foreign exchange and housing markets with a return of 30.5%, 24.8% and 19.1% respectively in the spring (March 20-June 20).

Some experts say they expect the country's volume of liquidity, which was about 15.3 quadrillion rials ($63 billion) in 2018, to have doubled to 30 quadrillion rials ($127.6 billion) by the end of current Iranian year, which ends March 19, 2021. According to the latest report issued by the Central Bank of Iran, liquidity had reached 26.5 quadrillion rials ($112.7 billion) by the end of the first quarter, an alarming 33.9% spike in liquidity in rial terms compared with the same period last year. This is stoking fears of higher levels of inflation.

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