Dollarization

EghtesadOnline: The phenomenon of dollarization has yet to emerge in Iran’s economy, i.e., the rial is still being used in transactions, though the daily increase in prices affected by the value of US dollar indicates a weaker form of this phenomenon.

EghtesadOnline: The effect of liquidity growth on inflation usually emerges with a delay, but what accelerates the growth of inflation in the short run is the speed of liquidity circulation and the share of “money” in the composition of liquidity, which is actually a reflection of inflation expectations.

EghtesadOnline: After Iran, Russia and Turkey, three regional allies hit by US sanctions, discussed a possible replacement of the US dollar by national currencies last week, business figures in Iran are now weighing in on the degree the plan can be implemented with success.