TilE ECONOMICS OF POWER

In a move that had as many political implications as it had financial connotations, Iran's Central Bank recently announced the adoption of a single foreign exchange rate. In a statement on Iranian television, Central Bank governor Mohammad Hossein Adeli said the decision was made by a special committee on foreign currency headed by the President himself, Akbar Hashemi Rafsanjani. "The rial, the national currency, is declared convertible and all those who need foreign currency can refer to the banking system for their various needs", the Governor said.