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More than 70 countries have deleted their zeros, know the most prominent


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If Iran is the latest country to resort to eliminating the zeros of its currency, in a psychological game aimed at restoring some confidence in the national currency by trying to absorb inflation represented in the high prices and the erosion of purchasing value, then dozens of countries preceded it to measures of this type that exceeded the number of 70 since the mid-twentieth century.

On Monday, the Iranian parliament responded to a project approved by the government of President Hassan Rouhani at the end of July 2019, and referred it to the Shura Council several months ago, where it was subjected to extensive discussion and conflicting views on the feasibility of such a step.
 
 
A central bank official confirmed that the deletion of zeros is supposed to be dependent on controlling inflation first, warning that the possibility of higher prices for goods and services exists, as well as the possibility of returning zeros after several years.
 
The government, at that time, decided to delete 4 zeros from its deteriorating currency and replace the riyal with the toman in transactions, and this was approved by Parliament yesterday.
 
But it is not the first time that Tehran deletes zeros, since in 2017 the central bank had to delete one zero, and this time the decision means that one million riyals will equal 100 riyals only.
 
Multiple studies indicate that the cases of deleting zeros from currencies exceeded the number of 70 cases since 1960, including cases carried out by 19 countries that got rid of zeros that were made in one go, and 10 countries resorted to this step twice.
 
Venezuela , Brazil , Argentina and Bolivia
 
 
The Iranian decision comes at a time of the real deterioration of the riyal as a main result of the tough sanctions applied by the administration of US President Donald Trump, which have found deep resonance in Venezuela , which is also subject to harsh penalties.
 
The circulation of new banknotes of the Venezuelan currency began in August 2018, in the first stage of a recovery plan launched by President Nicholas Maduro , to issue "Sovereign Bolivar" by removing 5 zeros from the old currency.
 
As for Brazil, it got rid of between 1930 and the beginning of the twentieth century, from 18 zeros in 6 batches, most notably in 1993, when it suffered badly from the acceleration of inflation to the level of 2000% and crossed 3 zeros.
 
The recurrent major economic downturn in Argentina led to its authorities taking decisions to write off zeros from its currency 4 times. Bolivia has also got rid of its zeros twice.
 
Turkey , Iraq and Sudan
 
Turkey replaced the old currency by canceling 6 zeros starting in 2005 with a decision issued in 2004, so that one million pounds equals one lira, and it was withdrawn from circulation, and instead the new zero-zero coins were put in the name of “New Lira” before re-adopting the name “Lira” separately And gave citizens 10 years to exchange their old currencies with the new currency from the headquarters of the Central Bank.
 
In Iraq , it was proposed in 2014 to delete 3 zeros from the dinar, but it was announced in 2015 to print a new cash category of 50 thousand dinars instead of deleting the numbers from the categories 1000 and 10 thousand dinars. Sudan also deleted Safrin from its currency in 2007.
 
Zimbabwe
 
This country omitted 3 zeros from its currency in 2003, and after only 6 years had passed, it came back and decided to cut 12 zeros, which means in practice that every trillion Zimbabwean dollars has become equivalent to one Zimbabwean dollar at that time!
 
other countries
 
The former Yugoslavia (Serbia) crossed out five zeros in 5 batches, while the Netherlands removed 4 zeros from its currency after in 1960 it issued paper notes with very large numbers. Ukraine resorted to crossing the zeros 3 times, and so did Russia, Poland, South Korea and Ghana.
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(Independent) .. The Iranian parliament approved a draft law allowing the government to delete four zeros from the riyal, after a sharp devaluation of the currency due to the US sanctions, according to what Iranian official media confirmed on Monday.

Under the project, Iran's national currency will change from one riyal to a toman, which equals 10,000 riyals.

The Iranian Student News Agency indicated that "a law to delete four zeros from the national currency was approved by lawmakers." The bill needs approval from a panel of clerics that examines the laws before they become effective.

State television said that it would take two years for the Iranian Central Bank to "pave the way for the currency to be converted to Toman."


The idea of deleting four zeros in circulation since 2008, but it became more urgent after 2018, when US President Donald Trump withdrew from the 2015 nuclear agreement and reimposed sanctions, as the riyal lost more than 60% of its value.

According to foreign exchange sites, the Iranian currency recorded about 156,000 riyals per dollar in the informal market today.

The weak currency and high inflation have sparked intermittent protests since late 2017.

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1 minute ago, Laid Back said:

Usually countries delete the zeros from their currency when they have hyperinflation problems. Does not the case with Iraq.

 

Go RV

Go asap

Exactly! Alak even stated that a couple of years ago. Iraq doesn’t have hyperinflation. When they talk about removing the zeros they mean RV. 

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We were in Russia 23 years ago to adopt 2 little girls.  When we converted our adoption money into Rubles we were millionaires!  Shortly after this Russia lopped off their 3 zeros, but they didn't allow enough time for everyone to cash in for the new currency and many of their citizens lost heavily in this action.  When we returned 7 years later, merchants were pawning the old currency on unsuspecting tourists like us!

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35 minutes ago, Rochester said:

:salute:Before this latest Iraq War started under George Bush the Second...it was Donald Trump, then a citizen, who wrote an op-ed in a New York paper, :reading-newspaper:saying the invasion of Iraq was a mistake that would be very costly. Of course he was right. Citizen Trump also said Iran and Iraq were always balancing each other out in power, that's why a war was a bad idea. He said one of the reasons the invasion of Iraq was dumb was that it would weaken Iraq, which would allow Iran to become dominant in the region. Citizen Trump said that would screw up regional stability. Citizen T said the regional balance of power would be thrown off by a war and that imbalance would have to be corrected....at great cost to America. :eagle: In all these things CT was right, was far far far ahead of everyone, in figuring this thing out. Then war happened.

 

Time passed. :bugs::rocking-chair:

 

Then Citizen Trump became President Trump. One of his many tasks was straightening out the foreign policy mess of his predecessors. :trash2:To that end, President Trump wisely got rid of the foolish nuclear deal that President Obama had signed with Iran.

 

Then President Trump put in sanctions with real teeth, onto Iran. This of course weakened the Iranian currency and the Iranian economy. Iran is getting weaker. That's why there are protests in the streets of Tehran. All this has been designed by President Trump, to re-balance power in the region, as he originally stated in his op-ed, before the war actually started. It's the same with taking out the Iranian General Soleimani, the rat who was orchestrating all the Iranian trouble-making, in Iran....He was removed to weaken Iran. :butt-kicking: As everyone knows, one of the biggest obstacles to an RV was all the trouble Iran has been causing, in Iraq.

 

So now Iran's currency is being changed?  Good. They have become so weak in Iran, their currency has become so worthless that they must do this..... But for President Trump's grand political power re-structuring of the ME to be successful, there is one missing ingredient. Yes, Iran has been severely weakened, but remember, that is only half he equation.

 

(a + b X C -1) = R x 4 :calculator:

 

The other half the equation, is Iraq. For President Trump's vision of a regional power balance to work, Iraq must be strengthened, so that Iraq is no longer threatened by Iran. Making Iraq strong  enough so it can cope with the threat of Iran requires many things. There is a method to this madness :jester: there are rulz here. :rulez:  One of the main things it requires is an Iraqi currency that is brought up to it's previous strength. If President Trump's vision for the ME succeeds, those of us who own the currency of Iraq, we stand to make a lot of money. :bagofmoney:

 

 Do you have your stand-by RV party plan? Cheers!

 

:moneybag::cheesehead: ....here's my party Corona plan: :undocumented::peace:

 

 

Rochester Thanks,  Excellent analysis of our investment...Keeping hope and faith alive 24-7.  GO DJT...🙏🙏👍👍🇺🇸🇺🇸

 

GO RV & RI

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1 hour ago, Rochester said:

One of the main things it requires is an Iraqi currency that is brought up to it's previous strength. If President Trump's vision for the ME succeeds, those of us who own the currency of Iraq, we stand to make a lot of money. :bagofmoney:


great post Rochester! I really hope his vision succeeds for Iraq during his presidency. (The sooner the better..😁 💰)

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Rouhani on deleting zeros from the currency: this will not be reflected in inflation

Economy | 01:06 - 06/05/2020

 
image
 
 

 

Follow-up - Mawazine News
, Iranian President Hassan Rouhani assured his country's population about the government's recent decision to write off four zeros from the national currency, and ruled out that this decision would have negative repercussions on the Iranian economy.
Today, Wednesday, the Iranian President said, "Deleting the zeros is aimed at facilitating accounting, and I do not think that it will have negative repercussions on inflation and economic growth."
Earlier this week, the Iranian parliament passed a majority to remove four zeros from the national currency and exchange them from the riyal to the toman.
The value of the toman will be 10 thousand Iranian riyals.
According to the law, the Iranian Central Bank will have 3 months to prepare the executive regulations for currency exchange, present it to the government for approval and start implementing it within two years. Ended 29 / A 43

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Iran deletes 4 zeros from its currency and changes its name

Editing Date: 4/5/2020 18:57 • 161 times read
Iran deletes 4 zeros from its currency and changes its name
Ayna News _

International The National Currency Committee in the Iranian parliament ratified, on Monday, an amendment allowing to change the country's currency from the riyal to the toman, and delete 4 zeroes from it, after a sharp decline in the value of the currency due to US sanctions.

This came, in the words of the Governor of the Central Bank of Iran, Abdel Nasser Hamti, in a tweet on his Twitter account.

He said in his tweet: "This morning, the central bank proposal was approved to delete 4 zeros from the local currency and transfer them to the Toman."

My concern is that the Toman will come into effect effectively and gradually, following the routine procedures that the Iranian government will take.

Hemati rejected the statements of some economists, who say that removing zeros from the local currency will contribute to the country's high inflation rates.

It is noteworthy that the Iranian Central Bank had offered to the government in January 2019, to delete 4 zeros from the local currency and transfer them from the riyal to the toman, which is equal to ten thousand riyals.

The idea of deleting four zeros has been circulating since 2008, but it has become more urgent after 2018, when US President Donald Trump withdrew from the 2015 nuclear agreement and reimposed sanctions, as the riyal lost more than 60 percent of its value.

According to foreign exchange sites, the Iranian currency recorded about 156,000 riyals per dollar in the informal market, Monday.

The weak currency and high inflation have sparked intermittent protests since late 2017.
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On 5/5/2020 at 10:52 AM, Last Call said:

Thank you Laid Back. I’d purchased Iranian Rial four years ago. Would love to cash it out. 

 

The chance of the Rial going at all with the current political situation between the US and Iran, is IMHO, a fairy tale. I know some so-called gurus are claiming that it will be in the 1st basket of currencies, but I just don't see it. If you haven't diversified your portfolio of currencies, with the IQD being your main currency, might be time to rethink your plans. Again, this is JMHO, and my disclaimer is that I AM NOT a GURU! 

 

Indy

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On 5/5/2020 at 6:52 AM, Last Call said:

Thank you Laid Back. I’d purchased Iranian Rial four years ago. Would love to cash it out. 

In my opinion Iranian rial is not a good investment. Iran is under economic sanctions 

 They have hyperinflation problems. their economy is in chaos. They are doing a RD redenomination or LOP. You still can cash out without a profit 
I mentioned this months ago to other members Navira and Screwball, they told me I was wrong.
Hope this help Last Call.
 

 

 

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