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Iran to delete 4 zeroes from the national currency

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BAGHDAD - The 
Council of Ministers of Iran in its meeting Wednesday, a proposal to delete 4 zeros from the national currency Riyal. 
The governor of the Central Bank of Iran, Nasser Hamati, is due to present details of the new government decision later. 
The official price of the US dollar is 42,000 riyals. Ending / 25

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Iran decides to change the currency from the riyal to the tuman and delete 4 zeros from it

Economy | 02:32 - 31/07/2019

 
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Continue - Mawazin News The 
Iranian presidency approved the deletion of four zeroes from the national currency and the replacement of the riyal by the two. 
"The deletion of four zeros from the country's national currency has been approved and the national currency will be replaced from the riyal to the tuman, because the toman is the most popular in the internal exchanges," said Iranian President Mahmoud Wazee, head of the Iranian presidential office. 
"The president of the Central Bank will provide more information on the subject next Sunday," he said. 
In turn, the agency "Fars" Iran, "This proposal aims to maintain the effectiveness of the national currency and facilitate and modernize tools of cash payments in local transactions, along with reducing the cost of printing banknotes and reduce the huge problems in the daily exchange, and the burden of counting currency and cash coins and carry large amounts Of which".
It is worth noting that the official price of the US dollar is 42000 Iranian riyals

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It’s good to see this news all over the news, Bloomberg and yahoo....cabinet has approved four zeros.

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3 minutes ago, yota691 said:

The president of the Central Bank will provide more information on the subject next Sunday,

 

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Number of readings: 2623 31-07-2019 02:17 PM


31-07-2019 02:17 PM

Iranian media reported on Wednesday that the government voted to delete four zeros from the national currency (riyal). 

The means said in reports that 'the government voted on a decision to cancel 4 zeroes of the national currency,' indicating that 'Abdel Nasser Hamati, head of the Central Bank, will provide more information about the decision later.' 

Iran's central bank has been seeking to withdraw four zeros from the national currency in an attempt to curb the flow of increased liquidity and help the riyal regain part of its lost value due to US sanctions and inflation due to the economic crisis.

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Iran decides in favor of removing 4 zeros from national currency

Date

7/31/2019 7:41:40 AM
 

 

(MENAFN - Trend News Agency) Baku, Azerbaijan, July 31

By Elnur Baghishov - Trend:

Iran has decided to revaluate its national currency, the Iranian rial, and remove four zeros from it,Trendreports referring to IRIB.

Today, the Iranian Cabinet of Ministers approved the decision on the removal of four zeros from Iran's national currency.

The Governor of the Central Bank of Iran Abdolnaser Hemmati is expected to soon make a statement regarding the matter.

 

Hemmati stated earlier that the project on the removal of four zeros from the national currency had been submitted to the Cabinet of Ministers. According to the project, four zeros will be removed from the Iranian rial; as such, one toman will be equal to the current 10,000 rials and 100 new rials.

According to the official exchange rate in Iran, $1 equals 42,000 rials, and its black market price fluctuates between 119,000-122,000 rials.

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No Date on this article...

 

DELETING ZEROES FROM NATIONAL CURRENCY Investigation and Analysis of Removing Zeroes from Iran’s National Currency

Seyed Valiollah MirHosseini1*, Reza Zare Rad2

1Assistant Professor, Social & Economic Department, Payame Noor University, 19395-4697 Tehran, I.R.of IRAN,

2Expert of Yazd power generation management co.

*Corresponding Author:
Seyed Valiollah MirHosseini 
Assistant Professor
Social & Economic Department
Payame Noor University
19395-4697 Tehran, I.R.of IRAN
E-mail: vmir9123@yahoo.com
 

Abstract

 

Not only money is the means of having economic exchanges, it also leaves influences on the national identity of people and the national authority of governments and therefore it can be used as a tool to strengthen national and political identity of different nations. In other words, the value of national currency can affect the perspectives of people towards their economic situation as well as the national identity of their country. If people always expect the devaluation of their currency, this will be a cause of concern for governmental authorities. Hence, it falls upon the governments to boost people’s confidence in their national currency by maintaining its value and thus preventing the phenomenon of “currency replacement”, i.e. taking refuge in foreign currencies. This article first attempt to investigate governments’ aim behind deleting zeroes from national currencies and then presents the conditions and requirements for this undertaking. Then, it will review the experiences of other countries and the history of removing zeroes from national currencies. Finally, the advantages and disadvantages of removing zeros from national currency will be explored.

 

Keywords

Currency, Removing Zeroes from National Currency, Value of National Currency, Rial, Inflation

1.0 INTRODUCTION

The value of national currency of each country depends on a myriad of factors among them economic situation of the country in the world, efficiency of the government and securing the costs, political, legal and judicial stability for attracting foreign investments, observing the international law and regulation and being in line with international changes, etc. Devaluation of national currency results in many social and psychological impacts. When national currency is being devalued, people feel a sort of humiliation in relation to other strong currencies. In addition, changes in the value of currency and in its volume, which is the result of such changes, brings about many hygienic impacts.

The phenomenon of “currency replacement” occurs when along with devaluation of national currency, people show a tendency to use foreign currencies for their daily exchange. The most significant use of deleting zeroes in economy is maintaining the value of national currency. Removing zeroes from national currency is more a political measure from the governments rather than an expert and technical one and is considered to be part of the package of economic reforms.

Removing zeroes from national currency is a tool for governments’ support of the strength of currency policies. This measure has an important role in boosting public confidence in governments. In democratic regimes, removing zeroes from national currency can play a significant role in re-election of a particular party. In contrast, if people lose their confidence in national currency, they will start using foreign currencies, particularly as they have more prestige, and this leaves enormous economic and psychological pressures on governments. Therefore, the economic policies of governments will be influenced by international financial markets and foreign central banks will affect the economic policies of the country in question. Therefore, removing zeroes will prevent the penetration of foreign currencies in the economy and the consequences.

2. LITERATURE REVIEW

2.1 The Objectives behind Removing Zeroes from National Currency

There are different reasons behind one country’s decision to change the national currency; among them one can mention the following:

1. Obtaining international credit
2. Regaining national identity and national confidence
3. Controlling the currency market
4. Decreasing the inflation pressures
5. Preventing currency replacement with foreign currencies

Investigations indicate that deleting zeroes from national currency can be effective only when

A. The domain of macro-economy posses stability
B. Inflation is on the decline
C. Currency rate is stable
D. Government refrains from excessive expenditure
E. There is great confidence in the society in government’s policies

If a government only suffices to remove zeroes from national currency and does not execute comprehensive and sweeping economic reforms, not only the policy of removing zeroes from national currency will not be effective, but also value changes of the currency are doomed to happen soon.

2.2 History and Background of Removing Zeroes from Currencies in the World and in Iran

The solution of removing zeroes from national currencies is usually used in the countries in which the national currency has too many zeroes. Since 1960, in 71 cases developing governments have been forced to remove a number of zeroes from their national currencies.

Removing zeroes from national currencies was first carried out in Germany and after World War II. Under the economic pressures of World War II and the remained damage, this country experienced a huge inflation that forced economic policy-makers of the country to remove zeroes from deutschmark. During the last 50 years, 19 countries have removed zeroes from their national currencies and 10 countries have done this twice. Zeroes have been shed from national currencies 4 times in Argentina, 5 times in former Yugoslavia, 6 times in Brazil, two times in Bolivia 3 times in Ukraine, Russia, Poland and Belgium, and once in Turkey, Island, Korea, and Ghana.

2.2.1 Brazil: Holding the Record of Deleting Zeroes

Brazil suffered from one of the heaviest inflations of the time in 1960s and 1970s in a way that the county’s currency was being devalued between 30 to 40 per cent each month. Before that, Brazil’s national currency had changed its name twice between 1930 and 1942. In 1967, three zeroes were removed from Brazilian national currency, called Cruzeiro, and the currency was re-named as New Cruzeiro. However, Brazil failed to control the inflation and inflation reached 151 per cent in 1981, during which time Brazil removed three other zeroes from national currency. In 1989, the inflation increased again and reached 1431%, forcing the country to remove zeroes and change the name of the currency. In 1993, when inflation was about 2000%, another 3 zeroes were shed. This time, the government managed to control the inflation. Meanwhile, Brazil is still considered one of the most expensive Latin America’s countries. From 1930 to now, 18 zeroes have been removed from Brazilian national currency in 6 times and the currency has been re-named 8 times.

2.2.2 Netherlands, Developed Experience

Dutch Disease is now a familiar term in economic literature. The appearance of sudden revenue resources from exploitation of gas resulted in an unpredictable inflation in Netherland in 1060s. The government was forced to publish large bills in order to satisfy people’s needs in daily exchanges. Meanwhile, the inflation went above 100%. In fact, the government did not last so long. The government started severe policies in currency policies and managed to control the volume of money. In addition, 4 zeroes were removed from the bills of the country. Netherland is a great example, showing the success of the policy of deleting zeroes when it is accompanied by other policies which control liquidity.

2.2.3 Turkey, Successful Experience

Turkey is a European country while having the grounds that are similar to developing countries. It suddenly removed 6 zeroes from its currency in 2005. Inflation started in Turkey in early 1980s and gathered momentum.

Each US dollar was traded with 1422 Turkish old Lira in 1988, and it reached more than 5.1 million Liras in 2003. Each sandwich was being sold for 3 million old Liras in Turkey. Since 1981, the need for having larger notes was being felt every two years.

In a 25-year cycle, the largest Turkish bill turned from 5000 Lira to one million Liras. The large number of zeroes in economic items and exchanges, which sometimes reached multi trillion Liras, had created many problems for people and had made life difficult for those living in this country. According to reports, people had to pay multi-million Liras for buying a piece of bread in the early 2000s in Turkey.

On first of January 2004, the instruction for removing 6 zeros from Turkish Lira was presented and its execution was postponed to early 2005. One the first of January 2005, new bills and coins, called New Lira, entered the market. Execution of this initiative, provided the grounds for economic growth however, the key to its success should be sought in the policies that resulted in this growth.

The economic experts of International Money Fund (IMF) consider Turkey’s success in combating inflation the reason behind the effectiveness of the policy of removing zeroes from national currency. According to the report provided by IMF, Turkey managed to fully control the inflation and reduce the inflation rate to single-digit figures before removing zeroes from its currency. Meanwhile reforming currency market helped the economy to set the grounds for economic growth.

2.2.4 Zimbabwe: a Total Failure

Zimbabwe’s government decided to remove three zeroes from the national currency when inflation reached 1000% in 2003. However, the government had practically done nothing in regard to controlling the inflation and was only thinking of the psychological effect of deleting zeroes. It is axiomatic that the efficiency of removing zeroes lasted for a short time. The rising inflation eventually ruined the country’s economy and Zimbabwe’s dollar diminished.

The inflation in the African country went above 11 million per cent and the government was forced to issue 100 million dollar bills in order to provide people with the required bills. The new bills could not solve any problems and they even resulted in many problems in trade and in accounting. The high volume of money in this country posed many problems for people in Zimbabwe. Meanwhile the central bank of the country announced that there was not enough bill paper available to issue the required amount of bills.

2.2.5 Iran

Removing zeroes from Iran’s national currency goes back to 16 years ago. The idea was first proposed by the Central Bank in 1993 was marginalized. In 2007, one of the members of economic Commission in the Iranian Parliament asked for further investigations. Thus a special commission was formed and it has been under investigation until now. The related commission first reviewed deleting 3 and then deleting 4 zeroes from the national currency. Iran has faced 10 percent inflation since 1974 and this has encouraged many experts to affirm the necessity of changing the conditions of the national currency.

The present head of Central Bank has already announced that this policy is definite; explaining that although removing 3 zeroes from the national currency is certain, this initiative requires further time and will be kept on hold for now. With a decrease in inflation rate, this initiative will be executed.

2.2.5.1 Reasons for Removing Zeroes from the currency

1. Problems related to having large figures in the daily exchanges
2. Problems related to accounting and calculations
3. Insecurities in carrying large amount of money for daily exchanges
4. Long waits at bank lines due to the problem of counting huge amounts of money
5. Changing national currency from Rial to Taman due to large amounts of money
6. The necessity to use Iran checks with regard to the legal problems associated with it.
7. The high cost of issuing and destroying inflow bills considering the high volume of bills
8. The high rate of bill destruction due to its high volume and thus difficulty of holding them

2.2.5.2 The advantages of removing zeros from national currency

1. reducing the volume of bills
2. reducing the costs of issuing and destroying bills in the country
3. having simpler trades and financial balances
4. strengthening national currency and its value in comparison to other currencies
5. positive psychological effects in the society
6. increasing its efficiency
7. Easier transfer of money
8. Possibility of having more valuable coins after deleting three zeroes by the government

2.2.5.3 Disadvantages and Problems of Removing Three Zeroes from the National Currency

The risks and problems of removing zeroes can be divided as follows:

1. The inflation effect resulting from rounding off the prices to higher amounts
2. Menu cost
3. Psychological effect of the decrease in salaried
4. The risk of sending the capitals abroad and the investors’ wait to see the result of the initiative
5. The return of deleted zeroes
6. Costs of re-issuing bills and minting new coins
7. Problems in determining the prices in short terms
8. People’s confusion in the short run and the society’s confusion until being adapted to the new condition
9. Devaluation of bills and appearance of inflation
10. Lack of relationship between number of zeroes and the value of national currency
11. Lack of changes in the economic process
12. Devaluation and loss of some bills and small coins in the daily exchanges between people
13. The project’s failure in case of not being supported by people
14. Decrease in exports as the result of increase in the value of national currency

When deleting zeroes from the national currency is not accompanied by providing the necessary infrastructures and in a sudden manner, it will leave very unpleasant effects on people’s power of purchase.

If removing zeroes occurs when economic reforms have proved to be ineffective or when the economic stability policies are just in the mid way, no desirable results will be gained by changing the national currency.

3. DISCUSSION AND CONCLUSION

It should be noted that deleting zeroes from national currency can only be effective when it is accompanied by anti-inflation policies and austerity measures in the realm of financial policies, financial regularities of the government as well as attempts to get rid of long-lasting budget deficits and reliance of oil revenues. Otherwise, removing zeroes will soon lose its psychological effect and the zeroes will return with even more strength. In other words, the best solution to combat the rising inflation and to execute the economic stability program is independence of Central Bank from the government and removing the problem-making economic policies. Deleting the zeroes can help to decrease the inflation and execute economic stability programs in two ways. First, removing zeroes from the national currency can be done at the end of economic stability program so to provide people and private agencies the confidence that the era of high inflation has passed. Removing zeroes in such a condition is totally symbolic because inflation has been controlled due to other factors and thus removing zeroes will not lead to decreasing the inflation on its own. Second, it will gain the trust of foreign investors and thus attracting more foreign investment, facilitating the process of economic growth for the countries. Finally, in order to increase the value of national currency, economic power needs to be increased as well. This is due to the fact that with the help of powerful economy, the value of national currency can be strengthened and then with controlling the inflation, positive measures would be taken in the long term.

4. SUGGESTIONS

In the country’s economy, we need to move towards electronic trade and transfer through bank systems, ATMs, checks and the like so that transfer of money is moved towards electronic banking and de-motivate people from carrying bills.

1. Importance of Cultural Development
In order to implement this project, the necessary grounds need to be provided. Removing three zeroes can result in some sort of confusion between the former and the new data in journals, data banks, and financial statements. Such a problem can be minimized by proper cultural development and providing a correct definition of old currency and new currency.

2. The Importance of Supervising the price exchanges
While implementing the project of removing zeroes from the national currency, the prices might witness some inflation. In other words, some people might try to increase the price of their goods along with the change in the national currency. Meanwhile, decreasing the basic currency might result in the necessity to round off the prices in order to get rid of small coins, thus leading to inflation. This problem could be minimized by proper supervision and provision of necessary information in order to prevent tangible impacts on the country’s economy.

3. Encouraging People to Use Electronic Transfer and Electronic Banking
In the country’s economy, we need to move towards electronic trade and transfer through bank systems, ATMs, checks and the like so that transfer of money is moved towards electronic banking and de-motivate people from carrying bills.

4. The time of implementing the project of removing zeroes from national currency needs to be postponed to the time that it will have the highest amount of effectiveness in the country’s economy. If implementation of this project does not occur in the appropriate time and as part of the package for reforming financial and banking system of the country, it will lose part of its effects.

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The government of Iranian President Hassan Rouhani approved on Wednesday a plan to lop off four zeros from the country’s national currency in a bid to help the Iranian rial regain its value in the face of the US sanctions.

 
 

The motion, proposed by the Central Bank of Iran, was ratified during a cabinet session.

The plan will be proposed to the Parliament as a double-urgent motion, the government spokesman Ali Rabiei said.

To be signed into law, the bill needs to be ratified by the lawmakers and the Guardian Council.

The CBI says its governor, Abdolnasser Hemmati, has already made it clear for the lawmakers at a parliamentary commission meeting that the Central Bank has full control over the foreign currency market and administers the situation to maintain the balance of currency rate with prudence and with regard to the market factors.

Proposals to remove four zeros from the currency have been floated since 2008, but the idea has gained strength as the rial lost more than 60 percent of its value in 2018 despite a recent recovery in defiance of US sanctions.

The currency was trading at about 119,000 rials per US dollar on the unofficial market on Wednesday, according to foreign exchange websites.

Rial weakness disrupted Iran’s foreign trade last year and helped boost annual inflation fourfold to nearly 40 percent in November.

In December 2016, Iranian President Hassan Rouhani’s cabinet had approved a motion put forward by the Central Bank to change the national currency from rial to toman, leading to a ten-fold decrease in banknote denomination.

Toman has been long used as the unofficial unit of money in Iran, while rial and dinar have been the country’s formal currency and non-decimal currency, respectively.

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“Lop off 4 zero’s” so what does that make the value of the currency now in US dollars? 

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Iran plans to cancel 4 zeroes from the value of the local currency

Iran plans to cancel 4 zeroes from the value of the local currency

31 July 2019 04:04 PM
Mubasher: The government in Iran has agreed to outline a plan to reduce four zeroes of the value of the local currency, amid the suffering of the country from a sharp fall in the value of the riyal in addition to being subject to sanctions.

The official Islamic Republic News Agency (IRNA) on Wednesday approved the plan, citing the comments of government spokesman Ali Rabi'i.

Rabbani's comments come with reporters on the sidelines of a cabinet meeting held in Tehran today.

The agency said a plan to reduce four zeros from the value of the Iranian riyal was provided to the government by the central bank in Iran in early January.

But the comments did not say whether the plan required parliamentary approval and gave no details on when the resolution would go into effect.

It is planned to give the governor of the Central Bank of Iran more details on this issue, according to the agency.

The dollar is equivalent to 42 thousand riyals, according to figures available on the website of the country's central bank.

 
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Soooo, if they lop 4 zeros off, as they describe above, then we don't make any profit if we hold rials, correct? 

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4 minutes ago, climber7 said:

Soooo, if they lop 4 zeros off, as they describe above, then we don't make any profit if we hold rials, correct? 

That would be my guess, but we will just have to see what they actually do.. they can say lots of things and do another..

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Anyone notice none of these articles seam to be the usual unreadable translated Arab, makes you think.

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IRAN REPLACES RIYAL WITH TOMAN

5b60861ce51a8.jpg
 

Follow-up / news stories

The Iranian presidency announced on Wednesday the decision to replace the riyal in Tumanan and delete four zeros from the national currency.

The President of the Office of the Presidency of the Republic of Iran, Mahmoud Awazi said in a televised statement that "it was approved to delete four zeroes from the national currency in the country, and will be the currency exchange from the riyal to the Tuman, because the Toman is the most popular in the internal exchanges," explaining that " The Central Bank will provide more information on the subject next Sunday. "

The aim of this proposal is to maintain the effectiveness of the national currency, to facilitate and modernize the tools of cash payments in local transactions, in addition to reducing the cost of printing banknotes, reducing the huge problems in daily exchange, Cash coins and carry large amounts of them. "

It is worth mentioning that the official price of the US dollar equals 42000 Iranian riyals

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1 hour ago, climber7 said:

Soooo, if they lop 4 zeros off, as they describe above, then we don't make any profit if we hold rials, correct? 

That is correct and you most likely will lose money! You will have to exchange the old riyals for the new toman currency and will also have only a limited time to do that! Unfortunately if you were in Iran that exchange would be easy but anywhere else well their will be exchange fees you can count on also to do that exchange!

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For all the Lopsters out there......

This what a Lop looks like .

A drastic measure to deal with run away Hyperinflation.  

They will try this and it may work....for a while, but with crippling sanctions it's probably doomed to fail , long term.

Venezuela is even worse... Run Away Hyperinflation.   A mirrored image of 1923 Weimar Germany.

Edited by Gunnytex
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5 hours ago, KDuesing said:

Anyone notice none of these articles seam to be the usual unreadable translated Arab, makes you think.

Good catch KDuesing. Like someone post to me earlier, misinformation.To neat and clean. 

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57 minutes ago, ChuckFinley said:

Good catch KDuesing. Like someone post to me earlier, misinformation.To neat and clean. 

what you mean?

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What does it mean to delete 4 zeros from the Iranian currency?

Image:

 

 

  • Electronic Statement
History: 31 July 2019

The Iranian government, subject to harsh sanctions, approved Wednesday a plan to remove zeros from its currency and replace the current riyal with the Toman.

"The government today passed a bill to remove four zeros from the currency and the two nations will be our national currency," Iranian government spokesman Ali Rabie told a news conference in Tehran.

The value of the Iranian riyal has continued to deteriorate since last year.

Three years ago, the US dollar was worth 37,000 Iranian riyals, but the Iranian currency deteriorated sharply last year to become a dollar of 180,000 riyals.

With the Iranian government taking a decision to delete 4 zeroes from its depreciated currency and replacing the riyal in two transactions, the state has acknowledged the devaluation of the currency and the need to speed up steps that reflect the bitter reality of the economic situation in the light of sanctions.

The Iranian government will send the economically bitter draft to the parliament for approval, so that every 10,000 riyals will be one tumana, and the exchange between the banks will remain only. This carries many meanings, all of which deal with the bitter decline of the currency and its exchange rate domestically and internationally. Published by Arabic Net.

Governments are erasing zeros when their currency loses purchasing power. This is a substitute for the issuance of large currency categories. With the tightening of sanctions on Tehran, the currency has deepened. The central bank is only trying to delete zeros from the Iranian riyal in an attempt to cope with rising inflation Due to the steady deterioration of the country.

It was not the first time that Tehran delete the zeros. In 2017, the central bank had to delete one zero. This time, the recommendations talk about the deletion of 4 zeros, and with this deletion, one million riyals will equal only 100 riyals.

The Iranian currency has fallen against the dollar in the past two years due to the deterioration of the economic situation and the rise of inflation by 30%, making the US dollar jump by 221% against the Iranian riyal.

Economists confirm the futility of the deletion of zeros in the appreciation of the currency, because of the failure of the government fundamental reforms in the monetary and banking system in the country.

The exchange rate of the dollar 120 thousand Iranian riyals on Wednesday compared to the exchange rate of 2017 of 34 thousand riyals to the dollar, a decline of 250%, while the exchange rate of the US dollar before the Iranian revolution in 1979 about 70 riyals only, reflecting the bitter collapse suffered It has the Iranian currency value.

Iran's experience in eliminating zeros is not the first. It was preceded by Venezuela last year when five zeros were eliminated, and Iraq in 2015, when 3 zeros of the Iraqi dinar were deleted. Turkey eliminated 6 zeros in 2003, with one million Turkish lira.

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27 minutes ago, yota691 said:

and Iraq in 2015, when 3 zeros of the Iraqi dinar were deleted. 

 

Huh??? 🤔

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17 minutes ago, fishing said:

Did not know Iraq deleted 3 zero from there currency in 2015!

Never happened! WTF?? 

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    • By DWS112
      This is the history of the currency in Iran .. Why Tehran will delete the zeros from its banknotes?
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      For decades, governments of many countries have benefited from the benefits of deleting zeros from their local currencies, to facilitate their use among people, reduce printing costs, control inflation and strengthen the position of the local currency among countries.
      After rounds of negotiations over the years, the Iranian government approved a proposal by the central bank in January this year to remove the four zeros from the local currency, and the proposal was submitted to the Iranian parliament for approval.
       
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      Toman Original currency

      The Toman will become the original currency of Iran, while the riyal remains the sub-currency, each 100 riyals constitute one toman.
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      Opinions on the new plan were divided between loyal and opposition until the issue became controversial in Iran.
      In their view, it is more feasible at this stage for the government to focus on reforming the country's economic system and reducing inflation, which has reached 40%, while the economic growth rate is 5%.
       
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       Inflation and other things

      says Ali religious Turkmen professor Tehran University and faculty member at Institute Studies and Research business in his speech to island "took this decision result continuous inflation years now which contributed zooms numbers."
       
      He pointed out that the basic elements of currency stability and control of inflation are not achieved when changing the currency and deleting zeros, Turkey has a similar experience in the deletion of six zeros from its currency in 2005, but the plan would not have benefited the Turkish economy without Turkey's involvement in the European market and attract head Foreign money and the correct management of the economy.
       
      He also said that this plan will not affect the purchasing power or people's property, and that the deletion of zeros will include money and goods at the same time, for example, the price of bread will become Tomanin instead of 20,000 riyals.
       
      Similarly, for foreign trade or foreign exchange transactions, prices will remain the same, and the purchasing power of foreign currencies will remain unchanged with the new toman, he said.
       
      In this sense, changing the currency and deleting its zeros is a double-edged sword for the Iranian economy. The success of the plan depends on the government's parallel economic reforms, to safely pass the thorny economic entitlement, otherwise it will sink into inflation again if it continues to deal with the old system and the same mentality four decades ago, observers say.
       
    • By yota691
      Economist: Iraq is not affected by the fall of the Toman because it deals with a basket of world currencies, including the dollar
      Economie 11:58 Last updated S homepage! 1208 Watch       BAGHDAD (Reuters) - 
      The collapse of the Iranian currency against the dollar is an internal affair of the Iranian republic and has a positive impact on Iraq, the economic expert said on Monday. 
      Jabbar said in an interview with "Al-Ghad Press" that "the financial deposit of the Iraqi investor in Iranian banks and banks is not affected by the decline or collapse of the Iranian Toman against the US dollar, being considered a foreign deposit remains the same with their benefits in a certain investment circle," adding that "The stock market and securities and the basket of foreign currencies against the Iranian currency will certainly affect the decline or collapse of the Iranian Toman."

      "The decline of the Iranian currency does not affect the Iraqi investors because the decline or collapse of the Tuman is because of the sanctions imposed by the United States of America on Iran, and therefore do not reflect a serious market," noting that "the process of retreat or collapse of the Iranian Toman on Iraq Will have a positive outcome, because Iraq is a country importer of Iranian goods. " 
      "The decline in the Iranian currency will reduce the investments in Iran and begin to move towards Iraq in light of the improved security and economic situation in Iraq," Jabbar said, adding that "Iraqi imports will be booming because the financial value of imported quantities will be less as a result of the decline of Atoman against the US dollar, Fruits and Iranian milk. "
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