Iran eliminates four zeros from its national currency

Iran eliminates four zeros from its national currency
ID : N-3910 Date : 2019/01/06 - 12:05

(Persia Digest) – The Governor of Iran’s Central Bank (CBI) has announced the decision to eliminate four zeros from the national currency.

Persia Digest (PD) reports that the CBI recently unveiled the new 50 thousand toman notes with the last four zeros designed in a faded color, prompting speculations that the government is seeking to eliminate four zeros from the national currency.

The Head of the CBI, Abdol-Nasser Hemmati, confirmed the speculations today, saying: “We intend to eliminate four zeros from the rial national currency soon. Thus, a 100,000 rial bank note will become a 10 toman note.

Hemmati also underlined that the CBI has submitted the request to the cabinet.

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On 8 December 2016, Iran’s government planned to change the Iranian currency from rials to tomans, with every toman being equal to 10 rials. But the bill was never sent to Parliament.

This said, the above was not a plan to eliminate zeros. It was only meant to change the currency unit from rials to tomans. The elimination of four zeros was also discussed at the time, but the cabinet eventually decided to postpone the national currency reform.

Eliminating zeros goes back a long way in Iran. In 2007, this was put on the agenda by former President Ahmadinejad. In 1993, the CBI conducted a comprehensive study on the subject, but the work was left unfinished on both occasions.

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Most economists believe that eliminating zeros from bank notes will not affect economic indicators, but it will have a psychological effect on society and the apparent increase in the strength of the national currency, and simplify trade and calculations during purchases. But eliminating zeros will require improving economic indicators and investment rates, freeing the economy, eliminating monopolies, presence of foreign banks in Iran, the unrestricted presence of foreign investors…

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