TEHRAN,Iran,May 7
Trend:
The denomination of Iran's national currency would affect the country's economic policies, Economics professor Aliakbar Nikoueghbal told Trend.
"Removing zeros from national currency has a long history and has been done in some 20 countries. The outcomes were different. Countries including Germany, Turkey and the Netherlands had positive results, while others like Brazil, Venezuela did not," he said.
"The scientific review of these experiences show that removing zeros from national currency is completely formal, and the effect would include reducing the volume of figures and inflation growth, easier transactions, confronting the disorder that is caused by lack of adaptation to the new currency, or problem in controlling prices," Nikoueghbal said.
"Such kind of move affects psychological, social and political spheres, but it can't improve real economic situation," he added.
"Removing four zeros from the national currency and naming it toman means that for example 1 million rials would be 100 tomans. The final approval of the bill would reform the first article of monetary and banking law that approved in 1972," Nikoueghbal said.
"Most officials in the country's economic sector and the Central Bank of Iran are very aware of necessity to implement the preconditions of this approach and it can be expected that the plan will be implemented in the next two years," he added.
"The policy of removing zeros from national currency without launching structural policies for the market based economy will not have benefits," he said.