Government Responsibility in Preserving the Value of the National Currency and Controlling Currency Depreciation
Keywords:
the rule of harmlessness, the rule of waste, protection of the value of the currency, inflation, Government responsibilityAbstract
The purpose of this study was to identify and analyze the dimensions of government responsibility in preserving the value of the national currency and controlling currency depreciation with emphasis on monetary policymaking, economic governance, exchange rate management, and public trust. This study was conducted using a qualitative approach based on thematic analysis. The research population consisted of university professors, central bank experts, economic researchers, and executive managers involved in monetary and exchange rate policymaking in Tehran, from whom 21 participants were selected through purposive sampling. Data were collected using in-depth semi-structured interviews, and data analysis was performed according to Braun and Clarke’s six-stage thematic analysis framework. Member checking and intercoder agreement were employed to enhance the credibility and reliability of the findings. The findings revealed that government responsibility in preserving the value of the national currency consists of six major dimensions, including monetary policymaking responsibility, economic governance, exchange rate management, legal and regulatory responsibility, public trust, and real economic development. The results indicated that liquidity control, central bank independence, institutional coordination, and policy transparency are among the most influential factors affecting monetary stability. Furthermore, weak economic governance, rising public debt, inflationary expectations, and ineffective exchange rate management were found to play significant roles in intensifying currency depreciation. In addition, strengthening domestic production, expanding non-oil exports, and enhancing public trust were identified as the most important long-term strategies for controlling exchange rate volatility. The findings suggest that preserving the value of the national currency requires a comprehensive and coordinated approach involving monetary, fiscal, legal, and governance policies. Governments can successfully control currency depreciation only when structural reforms, institutional transparency, economic accountability, and support for productive sectors are pursued simultaneously alongside monetary stabilization policies.
Downloads
References
Adrian, T., Natalucci, F. M., & Qureshi, M. S. (2023). Macro-Financial Stability in the COVID-19 Crisis: Some Reflections. Annual Review of Financial Economics, 15(1), 29-54. https://doi.org/10.1146/annurev-financial-110821-022107
Ahiadorme, J. W., & Adenutsi, D. E. (2023). Central Bank Policy Formulation Under COVID-19 in Ghana: A Fit-for-Purpose? Journal of Economic Analysis. https://doi.org/10.58567/jea02010007
Ahmed, S., Akıncı, Ö., & Queraltó, A. (2021). U.S. Monetary Policy Spillovers to Emerging Markets: Both Shocks and Vulnerabilities Matter. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3875652
Calomiris, C. W., & Jaremski, M. (2025). How Micro‐ and Macro‐governance Failures Cause Financial Crises. Journal of Applied Corporate Finance, 37(2), 36-45. https://doi.org/10.1111/jacf.12666
Carrière‐Swallow, Y. (2023). Inflation and Monetary Policy in a Low-Income and Fragile State: The Case of Guinea. Imf Working Paper, 2023(084), 1. https://doi.org/10.5089/9798400241277.001
Dong, Z., & Yin, Z. (2023). Study on the Impact of COVID-19 and America Fiscal Policy and Monetary Policy. Highlights in Business Economics and Management, 23, 815-820. https://doi.org/10.54097/wf22yj47
Dullien, S., & Tober, S. (2022). A Monetary Keynesian View of Modern Monetary Theory. European Journal of Economics and Economic Policies Intervention, 19(2). https://doi.org/10.4337/ejeep.2022.02.05
Gray, S. (2021). Recognizing Reality—Unification of Official and Parallel Market Exchange Rates. Imf Working Paper, 20(25). https://doi.org/10.5089/9781513568638.001
Harun, A. D. (2023). The Major Causes of Local Currency Depreciation in Somalia. Mjhiu, 1(2), 1-10. https://doi.org/10.59336/1715hx25
Hilowle, E. I. F. (2023). The Influence of E-Money on Currency Crisis and Depreciation in Somalia. Mjhiu, 1(1), 1-14. https://doi.org/10.59336/mjhiu.v1i1.7
International Monetary Fund, A., & Pacific, D. (2024). Regional Economic Outlook, Asia and Pacific, April 2024. https://doi.org/10.5089/9798400272349.086
Ishi, K., Pizzinelli, C., & Khan, T. I. (2021). Assessing Banking and Currency Crisis Risk in Small States. Imf Working Paper, 2021(276), 1. https://doi.org/10.5089/9781513599861.001
Ita, I. R., Ekpo, N. S., Chike, E. C., Anthony, O. E., & Loveth, O. (2023). The Contributions of Exchange Rate on the Growth of Manufacturing Sector in Nigeria: An Econometric Approach. Law and Economy, 2(3), 22-28. https://doi.org/10.56397/le.2023.03.04
Kämpf, V., Stadtmann, G., & Zimmermann, L. (2024). Swiss National Bank: Is the Recent Loss a Threat to Monetary Policy? A Research Note1. Journal of Central Banking Theory and Practice, 13(1), 43-55. https://doi.org/10.2478/jcbtp-2024-0003
Köse, M. A., Nagle, P., Ohnsorge, F., & Sugawara, N. (2021). Global Waves of Debt: Causes and Consequences. https://doi.org/10.1596/978-1-4648-1544-7
Li, W., Cong, Y., & Xu, J. (2023). The Impacts of Epidemics on Green Innovation: An Empirical Analysis. Fe, 1(1). https://doi.org/10.61173/gvvx7r89
Mayer, T., & Schnabl, G. (2021). How to Escape From the Debt Trap: Lessons From the Past. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3848340
Mohamoud, A. M. (2023). The Effects of Dollarization on Local Currency in Somalia. Mjhiu, 1(2), 24-34. https://doi.org/10.59336/4bmk3f18
Nozdrev, S. (2022). Asia’s Public Debt: Will a Stabilization Period Come? World Economy and International Relations, 66(5), 41-49. https://doi.org/10.20542/0131-2227-2022-66-5-41-49
Raihan. (2022). Monetary Overinvestment and the Fall of Asian Tigers. Review on Islamic Accounting, 2(2). https://doi.org/10.58968/ria.v2i2.166
Schnabl, G. (2023). Seventy‐five Years West German Currency Reform: Crisis as Catalyst for the Erosion of the Market Order. Kyklos, 77(1), 77-96. https://doi.org/10.1111/kykl.12359
Submitter, A., Prabheesh, K. P., & Kumar, S. (2022). How Do the Financial Markets Respond to Emerging Economies’ Asset Purchase Program? Evidence From the COVID-19 Crisis. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4204170
Sumba, J. O., Nyabuto, K. O., & Mugambi, P. J. (2024). Exchange Rate and Inflation Dynamics in Kenya: Does the Threshold Level Matter? Heliyon, 10(15), e35726. https://doi.org/10.1016/j.heliyon.2024.e35726
Tian, Y. (2024). Analysis of the Impact of US Quantitative Easing Policy on China's Macro Economy. Highlights in Business Economics and Management, 24, 2069-2084. https://doi.org/10.54097/2zjt2679
You, J. (2023). Research on the Two-Way Influence of US Monetary Policy Since the COVID-19 Pandemic. Highlights in Business Economics and Management, 15, 64-72. https://doi.org/10.54097/hbem.v15i.9234
Zayim, A. (2022). Financialized Growth and the Structural Power of Finance: Turkey's Debt-Led Growth Regime and Policy Response After the Crisis. Politics & Society, 50(4), 543-570. https://doi.org/10.1177/00323292221125566
Zhou, X. (2023). The Role of European Central Bank in the Dilemma of Economic Crisis. 1950-1960. https://doi.org/10.2991/978-94-6463-098-5_220
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Hamid Ebrahimian (Author); Ali Parrimi (Corresponding author); Mohammad Rohani Moghadam, Maryam Aqai Bejestani (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
