Explain the features of the structure of the currency system resistant to economic threats

Author

Assistant Professor, Faculty of Islamic Studies and Economics, Imam Sadegh University

Abstract

The sharp decline in the value of the national currency in years 1 and 2 can be called one of the instances of currency crises. Although the crisis has been exacerbated by the inadequate economic structure of the country in the years leading up to the crisis, there is no doubt that Western threats and sanctions are the main cause of the crisis. Western sanctions aimed at balancing supply and demand in the foreign exchange market by reducing foreign exchange resources and limiting the movement of these resources, and this imbalance triggered the currency crisis. This article seeks to propose a structure for the country's currency system, using the experiences of the past currency crisis, to be more resilient to possible future threats. This structure includes suggestions on infrastructure factors, factors related to the stable supply of foreign exchange resources, demand management of foreign exchange resources and the development of the foreign exchange market.

Keywords

References

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Security Horizons
Volume 8, Issue 29 - Serial Number 29
September 2020
Pages 29-46

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History

  • Receive Date: 05 October 2016
  • Revise Date: 11 September 2019
  • Accept Date: 19 September 2018

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