Elimination of four zeros of the national currency

[Homajon]

https://ismaelhossein-zadeh.com/2019/08/14/حذف-چهار-صفر-از-پول-ملی/

 

[Fawadqasim1]

I remember Russia did the same in 1990s

 

[Hack-Hook]

Useless move till they control inflation .
In fact if inflation is not controlled and you remove those zeroes you'll have a jump in inflation just because of psychological effect.

 

[TruthHurtz]

Genius, following Zimbabwe's example!

 

[raptor22]

Useless move till they control inflation .
In fact if inflation is not controlled and you remove those zeroes you'll have a jump in inflation just because of psychological effect.

It's already been done by people it just makes it official ... but again you're right first inflation must be controlled

 

[zectech]

Useless move till they control inflation .
In fact if inflation is not controlled and you remove those zeroes you'll have a jump in inflation just because of psychological effect.

Should have been stockpiling gold and silver for the past 20 years. Then back the currency with gold and silver to Iranian citizens. You can set the value of the Rial to any amount when you have gold backing the currency. Short sellers would lose their shorts, and thus lose billions and perhaps trillions of euros. They would not have collapsed the currency in the first place, if Iran was stockpiling gold and silver.

10 billion euros a month to buy gold and silver, after 10 years, you have a sound currency. Never export the gold, let only citizens redeem paper for gold in banks and make the gold and silver only for bank transactions (withdrawals and deposits). This would eliminate any fake gold coins in production and circulation.

Having such a sound currency and economy would spark a war like Libya, so Iran would need nukes to protect the Iranian economy. Zionists hate when their enemies are happy and prosperous.

 

[TheImmortal]

Should have been stockpiling gold and silver for the past 20 years. Then back the currency with gold and silver to Iranian citizens. You can set the value of the Rial to any amount when you have gold backing the currency. Short sellers would lose their shorts, and thus lose billions and perhaps trillions of euros. They would not have collapsed the currency in the first place, if Iran was stockpiling gold and silver.

10 billion euros a month to buy gold and silver, after 10 years, you have a sound currency. Never export the gold, let only citizens redeem paper for gold in banks and make the gold and silver only for bank transactions (withdrawals and deposits). This would eliminate any fake gold coins in production and circulation.

Having such a sound currency and economy would spark a war like Libya, so Iran would need nukes to protect the Iranian economy. Zionists hate when their enemies are happy and prosperous.

That is a nice oversimplification of the idea.

US was backed by gold and by 1970’s it halted this because countries started converting their dollars into gold at an increasing rate due to US monetary policy. It was becoming unsustainable.

Once US sanctioned Iran and pulled out of nuclear deal, there would be a major run on the rial as people would find more safety in gold rather than the rial even if it was backed by gold.

As Iran’s crude oil exports fell, more and more rial would be exchanged for gold by countries, businesses, and average consumer. Eventually demand for conversion would exceed the supply available to convert and still back the currency.

Iran did buy ALOT of gold during the Obama era to stabilize its central bank. So it’s not like Iran has been sitting on its hands.

Furthermore, Iran’s currency should naturally be much weaker than dollar. Just look Turkish currency to dollar today.

Anyone expecting a 1 dollar = 1000 toman conversion needs to look at Iranian economy and explain such a justification.

 

[Homajon]

https://financialtribune.com/articl...6/iranian-rial-revaluation-crosses-one-hurdle