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Iran to Lop 4 Zeros off Currency

Service : Economy
TEHRAN, July 14 (ICANA) – The government is planning to erase four zeros from Iran's national currency in order to strengthen the Rial.
Thursday, July 14, 2011 10:16:59 PM
Iran to Lop 4 Zeros off Currency

This is another stage of implementing President Mahmoud Ahmadinejad's comprehensive economic reform plan. A blue print which has so far lead to phasing out subsidies alongside reforms in the country's tax system.

Iran's Minister of Economic Affairs Shamseddin Hosseini says the government has discussed the details in the economic commission and is preparing a bill to present to the parliament.

Absolutely convinced that currency redenomination is a good idea, head of the Central Bank of Iran says this is the result of a 24-month study and will be implemented in three years. Meanwhile some economists are concented about the adverse effects it may have on the inflation.

Some experts say under the current circumstances it is difficult to predict future economic developments. Mohammad Khoshchehreh a former member of the parliament was one of the MPs who had originally proposed lopping 2 zeros off the national currency five years ago. He says: “When we proposed this, the volume of currency in circulation was high and our oil revenues were on the rise… now things are different and I believe that we need to focus on policies that will boost our economic growth and remove obstacles that usually impede production while controlling the import of goods before slashing the zeros… and it is essential that we study the effects in other countries such as Turkey which have had to take similar measures”.

In the mean time the central bank of Iran is staring a new website on Saturday to provide more information as well as a platform for experts and the public to discuss their views regarding the issue.

Iran's Money and Credit Council, M-C-C, will have to confirm the plan and the parliament and the Guardian Council will have to ratify the changes before any of the zeros are lopped off.

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