Tehran, Iran, Jan. 14
Trend:
Iran's proposal to remove four zeros from the national currency, the rial, will be like going under the knife of a plastic surgeon, Steve Hanke, an economist at John Hopkins University, told Trend.
The Iranian Central Bank wants to remove four zeros from the national currency.
"We have submitted to the government a draft in this regard and we hope this important step is implemented soon," said the Central Bank Governor Abdolnaser Hemmati.
Referring to such policies in the world, Hanke said these measures always accompany episodes of hyperinflation.
"Indeed, the greatest hyperinflation on record was Hungary’s, where the daily inflation rate reached 207 percent in July of 1946," he said.
"This was followed by a currency reform on Aug. 1, 1946. The pengő was replaced by the forint, and the conversion rate was 400 octillion (4 followed by 29 zeros) pengő to one forint."
Hanke went on to say that Hungary lopped 29 zeros off of its unit of account, which means this was the biggest lopping off of zeros in history.
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