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Why Iran eliminating zeros from its national currency?

Finance Materials 13 February 2021 10:31 (UTC +04:00)
Why Iran eliminating zeros from its national currency?

BAKU, Azerbaijan, Feb.13

Trend:

The Central Bank of Iran's decision to eliminate zeros from national currency is being implemented in stages, said the former member of the Money and Credit Council Gholamreza Mesbahi Moghadam, Trend reports citing Ibena.

"The Central Bank is gradually falimiarizing people with the new currency," he said.

Moghadam also said the new currency aims to prevent people from having certain illusions about the money.

"The Central Bank has dimmed the color of zeros on the national currency, to reduce miscalculations of money in nominal terms," he said.

"The monetary reform is currently happening, and does not have a role in reducing or increasing inflation, and it's only a measure to eliminate unessential zeros from currency," Moghadam said.

"This would help eliminate bad feeling about the devaluation of the national currency, when it is compared to other currencies," he said.

"Eliminating zeros from national currency would also help banking and commercial calculations and it would be easier to read the figures, so the people would use Toman in their transactions, " he said.

Iran’s parliament passed a bill allowing the government to slash four zeros from the rial in May 2020 after a sharp fall in the value of the currency as a result of US. sanctions.

Iran’s national currency will be changed from rial to Toman, which is equal to 10,000 rials, under the bill.

The idea of removing four zeros has been in talks since 2008, but gained strength after 2018, when then US. President Donald Trump exited Iran’s nuclear deal and re-imposed sanctions.

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