financial basis and liquidity; Correcting a common misconception.
Abdulnaser Hammati, head of the central bank:
🔹 The relationship between the financial base and liquidity requires reference to the factors that influence the creation of liquidity and the way reserves are provided, and liquidity is not the result of a mechanical duplication of the financial base with an "increased coefficient".
Most of the liquidity is created in the process of crediting banks and creating deposits as a result, and banks need reserves at the central bank to settle payments and fulfill legal reserve obligations. Therefore, the increase in credit and the resulting deposits can also increase the demand for the monetary base.