Cutting zeroes off currency has no inflationary impact: CBI

Iran Materials 19 July 2011 11:10 (UTC +04:00)

Removing four zeroes off the national currency will not have any inflationary impact on the economy, the deputy governor of the Central Bank of Iran, Hossein Qazavi, said here on Wednesday.

Qazavi emphasized that according to studies and economic theories, lopping zeros from the national currency will not increase inflation-MNA reports.

Iran plans to slash four zeros from its national currency in one to two years, seeking parity between its rial and the U.S. dollar.

Iran's cabinet approved a plan on Monday to re-denominate the rial by cutting four zeros from the national currency.

The plan needs to be approved by parliament and the Guardian Council, the country's top legal authority, and will take about three years to implement, Central Bank Governor Mahmoud Bahmani said earlier.