Decline of Money Value in Safavid Era and Its Main Reasons

Money as an intermediate in exchanges has always been a reflection of economic situation of a historical period. Safavid era’s economy was commodity and consumer, in which money - only in urban economy and foreign trade- played an intermediate role. Golden, silver and copper coins were supplied by Iran's own mines or from export of products such as silk and also from other foreign merchants. In this era, Bazaar was the main center of circulation of money in urban economy and all monetary transactions were done by moneychangers. Foreign trade was also in control of Jewish and Banian (Indian) and Armenian merchants, who were the biggest importers of any coins from the Ottoman Empire. The lack of money in Safavid’s period was one of the main problems of the economy and it also was the result of money smuggling by Dutch and Indians on the one hand and money saving by people and the government on the other hand. Gradually, this problem led to reduction of value of the money and a rise in prices, finally weakness and collapse of Safavid were the consequences of those problems