By: Mir M.Hosseini
The Iranian parliament authorizes Bank Melli which was originally founded in 1928 to publish banknotes. This authority was to be renewed every 10 years automatically. In less than a month, first Iranian banknotes were circulating in the market. Bank Melli undertook duties which were normally within the domain of the central bank until Aug, 9, 1960 when Bank Markazi was founded and their authorities were separated.
Due to high inflation rates following the Iran–Iraq War, the value of Iranian currency has been constantly decreasing. On the other hand, the value of the biggest banknotes remained 10000 Rials. Bank Melli issued its own money-checks with bigger face values that circulated inside the economy for some years thus; making it impossible to observe a central monetary policy. Although these money-checks have been taken out of the economy, the tremendous devaluation is forcing authorities to consider taking 3-4 zeros off the money unit.
Unfortunately, corrupt people pretending to be revolutionary, with little knowledge and experience have penetrated Iran's public systems since 1979 and have created multiple decision making centers that have paralyzed the Iranian economy.