Tahqiqāt-e Târix-e Eqtesâdi (Economic History Studies of Iran)

The Imperial Bank of Persia and Modern Credit Money in Qajar Iran: The Tension between Institutional Development and Colonial Domination

Articles in Press

Document Type : .

Authors

Abolghasem Shadmanpour 1
Mahdi Kermani 1
Ahmadreza Asgharpourmasouleh 2
Ali Baghdar Delgosha 3

1 Department of Social Sciences, Faculty of Letters and Humanities. Ferdowsi University of Mashhad. Mashhad, Iran

2 Department of Sociology, Faculty of Social Sciences, Imam Khomeini International University, Qazvin, Iran

3 Department of History, Faculty of Letters and Humanities, Ferdowsi University of Mashhad, Mashhad, Iran

10.30465/ehs.2026.53855.2079
Abstract
Given the institutional turn in development studies and economic sociology’s emphasis on money as a pivotal social institution, this research employs historical institutionalism and Geoffrey Ingham’s “Social Theory of Money” to analyze the consequences of establishing the Imperial Bank during the Qajar era. Credit money and banking systems are fundamental pillars of modern societies, with their evolution reflecting a nation’s development history. By securing the exclusive right to issue banknotes, the Imperial Bank introduced modern credit money into Iran’s economy. The study posits that money is an institution possessing infrastructural and authoritative capacities. Findings reveal that granting this monopoly, without integrating it into domestic socio-economic networks and in the absence of effective political oversight, failed to achieve primary goals such as attracting foreign capital, industrial development, railway construction, or transitioning to the gold standard. Instead, the institution became a tool for strengthening British colonial influence. Ultimately, this institutional adaptation—incompatible with local contexts and negligent of the social nature of credit money—did not lead to economic prosperity. Rather, by disrupting political and social spheres, it confronted Iran’s historical development path with significant material and perceptual obstacles, stifling opportunities for structural growth.

Keywords

Credit Money
Social Theory of Money
Imperial Bank of Persia
Qajar Era
Colonization
Economic Development
Subjects
Tahqiqāt-e Târix-e Eqtesâdi (Economic History Studies of Iran)

Articles in Press, Accepted Manuscript
Available Online from 13 June 2026

  • Receive Date 25 December 2025
  • Revise Date 22 April 2026
  • Accept Date 13 June 2026

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