I am not so sure if increasing interest rate will affect M1 in Iran. Still it seems it has been done to encourage people to keep their deposits in the banks. That is being said, I wonder if this means banks are going to charge a higher APR as lenders. One has to wait and to see. All in all currency market seems a bit calmer. Although I do not know if this is due to the government's edicts or its new policy regarding interest rate.
There is one silver line though; Iranian public and media have been talking about economics so much that I think they are going through a crash course on Econ101. I hope this increases the public awareness of market dynamism and shifts in the economy.