Iranian Rial Discussion Board

[RJ Trotts]

Iranian Rial.

Saw this little tidbit about Iran…
“Monetary policy aims to manage money supply, inflation and interest to affect output and employment. Inflation is decrease in value of a specific currency over time and caused by dramatic increases in money supply. The interest rate is an important tool used to control inflation and economic growth in monetary economics.
The Central Bank is responsible for monitoring and controlling money supply, interest rates and banking.”

“For instance, liquidity was around 170,000 billion rials in year 2000, 500,000 billion rials in 2005 and 950,000 rials in 2006.”

Notice: those numbers are in thousands of billions, so that’s trillions.
Iran has 950 trillion M2

“TEHRAN, Oct 16: Iran’s foreign currency reserves held in foreign banks have risen by almost 40 per cent to $52.3 billion due to high oil prices, the press on Monday quoted a central bank report as saying.”

Iran has 950 trillion M2

Iran has 52 billion in foreign currency reserves.

Exchnage rate 9256/.0001

Looks like Iran backs their M2 at 50%.

Just a couple observations.

Iran and Vietnam, M2s of 950 trillion and 810 trillion, exchange rates of 9256 and 16112.