Monday, December 18, 2006


Iran switched its central bank foreign-held currency from Dollars to Euros. Picture us with raised eyebrows because this sort of thing is a pretty big deal. We won't fumble through a poorly laid out explanation about how currency is, to some extent, a house of cards and when macro changes of this sort happen, the effects can be huge. The Asian Financial Crisis in the late nineties is just one example and that was because of private Hedge funds. Just to be clear, recall that pre-invasion Iraq had just switched to Euros and Bush switched it back to dollars ASAP.
Now, this isn't the same thing as China switching over, but it is still mighty interesting.

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