Iran to slash 4 zeros, rename currency

[QWECXZ]

whoops. rookie mistake.

Happens to all of us. English is not our native language.

you are not the only one, and it is not a bad idea. but there are a thousand things they need to do before slashing any zeros from rial.

Why? What can go wrong? We are already printing money and adding to liquidity because our companies and investors cannot pay back their loans and our banks always have deficit because of that. If we replace paper money in several years, I don't think it will make that much of a difference. Why should it?

 

[masterchief_mirza]

Rename it to... Zim Dollar perhaps?

 

[DocEinstein]

iran is presently in dire straits .

Yes they decided to rely on their fair weather friend India hoping that India will be somewhat autonomous to Western pressure however it did not work out for them did it ?

Good opportunity for Pakistan to buy cheap oil and gas and goods from them. They have wonderful pomegranates too.

If they stop supporting terror and separatist elements being hosted in their homeland and allowing RAW spies like Yadev to operate freely from their land.

 

[Hack-Hook]

well... That's gonna help with the inflation...

no it won't change inflation , and if there be a change it make it worse

Honestly, I think slashing four zeroes is a good idea but maybe that's me only. And I don't see why it should contribute to inflation because 10,000 Rial is already pretty worthless in Iran. You can barely find an ice cream costing 10,000 Rial. Maybe a one way metro ticket costs that much. I don't know.

it never is good Idea unless you control inflation first

Iran has both the resources (material and personnel) and knowledge to produce everything! There is absolutely no doubt about that! However Iran is unable to do it cost efficiently and at a state of the art level for all these items.

no we simply don't have that .

Yes they decided to rely on their fair weather friend India hoping that India will be somewhat autonomous to Western pressure however it did not work out for them did it ?


If they stop supporting terror and separatist elements being hosted in their homeland and allowing RAW spies like Yadev to operate freely from their land.

just stop with nonsense

 

[QWECXZ]

it never is good Idea unless you control inflation first

Explain why.

 

[makranman]

Iran has both the resources (material and personnel) and knowledge to produce everything

resources and knowledge are not everything. the supply chain needed for a simple car (take Saipa's pride) is massive. that is only one type of product. and supply chains don't come to existence with a flip of a wand. honestly, I don't want to be the poor guy who is going to plan that thing (unless I am paid handsomely )
though if we start doing that, we can decrease unemployment and economy problems in one go. which is why this year (shamsi year) is named "رونق تولید".

Why? What can go wrong?

my main issue is the cost of changing national currency. we need a LOT of new banknotes, many documents need to be updated, people will make lots of mistakes early on, etc. etc. so imo we need to solve bigger issues like banking system and when all other big large scale problems are solved, we can slash those nasty zeros. this will take decades!

 

[QWECXZ]

my main issue is the cost of changing national currency. we need a LOT of new banknotes, many documents need to be updated, people will make lots of mistakes early on, etc. etc. so imo we need to solve bigger issues like banking system and when all other big large scale problems are solved, we can slash those nasty zeros. this will take decades!

Honestly I think it makes it easier for people to do calculations and conversions. I for one always had to pause a moment before writing a check to convert Tomans to Rials. Slashing 4 zeroes makes it a lot easier for me. People always use Toman in Iran. So, you basically have to change billion to million and million to thousand.

So, 5 million tomans becomes 5 thousand tomans. Five stays the same, but for Rial, five had to change to fifty. Shifting by 3 digits is always easier than by one digit.

And issuing bank notes can take years to complete. We are printing money anyway for the reason I said before. As for rounding inflation, 10000 Rials is already so worthless that it won't make much of a difference. I highly doubt that this decision will make much of a difference to Iran's already high inflation.

 

[Robbie]

So what is the new name going to be?

 

[zectech]

Those who say copper coinage causes inflation like in Ancient Rome. They are incorrect. Rome debased their silver coins, made them 5% silver and passed them off as worth as much as a days labour. Then they made them bronze coins, worth only cents. And thus fell in value by hundred fold.

Iran would not debase their currency with a copper back Rial, copper is worth over 4 euro a kg. Iran would be fixing their currency to a valuable commodity for stability. And issuing banknotes for simplicity.

 

[somebozo]

For many years, Iran’s government debated changing the national currency, the rial, by basically slashing four zeros off its face value — an acknowledgment of how American sanctions and economic mismanagement have contributed to inflation in the country.

Devaluations is a disease and root of all economic malaise.
At the end of WW2, German economist argued against the devaluation theory and up valued the currency by 92% and it spiralled a fantastic economic recovery in two years. Turkey did the same with its old Lira and Iran is thinking across the same lines now. But there is already a record of two successful experiments. Iran has many proven reserves of gold ore and gold production can support the currency and keep inflation low.

The change is the outcome of a draft bill presented in early 2019 by the governor of Iran’s central bank, Abdolnasser Hemati. He noted that the currency has been devalued 3,500 times since 1971 and that Iran had no choice but to “save the face” of its national currency, according to Iranian official media reports. Earlier attempts by President Hassan Rouhani’s government to change the currency as far back as 2016 had remained in limbo.

this is why dollar demand is high in Iran which keeps valuable liquidity locked up in dollarized savings.

 

[Aspen]

So what is the new name going to be?

Toman, but basically this is already used as the de-facto currency. This decision just makes it official.

 

[TruthHurtz]

What are Iran's gold reserves like?

 

[Hamartia Antidote]

So what is the new name going to be?

Mullah Moolah

Replace "Wooly Bully" with "Mullah Moolah"

 

[Sina-1]

https://twitter.com/x/status/1257972573645737989

 

[Aspen]

What are Iran's gold reserves like?

They're bringing some gold from Venezuela so it will be more than what they had last week.