Remove zeros from currency …. cash version or number?

A bored financial file belongs to the interface that is always considered symbolic tools to reduce currency decline in long -term expansion and cash -falling countries. In the global economic scene of the world economical, the focus of some countries is redirected towards a simple obvious solution, but it contains deep questions about its actual feasibility and effects: eliminating zeros from national currency or re -assessing the currency. “

After Iran’s announcement of the purpose of implementing this stage this year, after the release of four zeros, the new Royal Tuman is replaced by the new Royal Tuman, which is highlighted as a re -promoted selection in other countries such as Syria and Lebanon, which sucks the SUFF Piri.

Although Tehran’s plan is not new in the literature of the monetary economy, it will reopen the doors for a wide discussion: What does it really mean to remove zeros? Does such a measure improve economic reality? Or do international experiences confirm that the “currency version” is not exceeding the official measure of wearing a “currency version” without comprehensive economic and construction reforms?

What does it really remove zeros?

The process of re -assessing the currency tries to strengthen its image by improving its efficiency and reducing the circulatory numbers, especially for the loss of national currency for high expansion and its reliability. This phase appears to be one of the legal stages that contribute to increasing confidence in the local economy and reducing the inflation rate, although its effect is highly temporary.

Simplifying banking and accounting transactions, facilitating the prices of bills and the prices of goods, increasing the impact of the economy. It also has a positive mental impact on citizens, which may be considered that the currency has become more regular and acceptable. It can also promote the use of national currency instead of foreign currencies, especially in the environment looking at a wide “dollar”.

However, this stage is surrounded by many accidents, which are likely to increase inflation if it is not attached to the harsh seizure of inflation. The cost of enforcement in terms of adjustment of payment systems, currency re -printing and updating contracts and salaries is expensive. When it comes to a very important challenge, you see this step as a cosmetic act that does not address the basic reasons for cash decline.

Iran: New Toman … Is it eliminating inflation years?

In an official statement, the Governor of Iranian Central Bank, Muhammad Reda Farazin, in 2025, confirmed that his country would start implementing a plan to remove four zeros from Riel and be launching “Toman” with a new cash unit, thus equivalent to 10 thousand Reals.

Although the law was approved in 2020, its application was delayed due to the continuation of the unfavorable economic environment, one of its leading characteristics of over 40 percent annual inflation, and over 95 percent of the four decades, along with long -term financial deficit and international sanctions. For example, the Ten thousand Real Paper equals $ 150 before the revolution in 1979, but its value does not exceed ten American cents today.

Many Iranian economists think this step is an attempt to improve shape without resolving the deep causes of the crisis. If it is not associated with complex and organizational versions, the removal of zeros will not make a real change, but may lead to further confusion in the critical scene. The minister of the economy, the minister of the economy, may be kind to the occupation of the central bank, the lack of ambiguity and transparency of the mechanisms to target inflation, the impact of the monetary policy is limited when the impact of the monetary policy is limited.

Is it the forefront of removing zeros in Iraq?

From time to time, Iraq reopens the file that removes zeros from its local currency, which is part of the monetary version project with the aim of increasing economic stability and simplifying daily transactions. The Central Bank of Iraq confirmed that the project had been under 2007 from the end of last year, but it did not make an appointment for its implementation due to the challenges of the exchange rate and the volatility of political conditions.

Iraqi saw a significant decline in its value against the dollar, which increased the high prices of inflation rates and goods and services.

Syria … new lira in a ruined economy

In Syria, one of the deadly economic collapses in its modern history, Lira’s exchange rate exceeds the 15 thousand obstacle against the dollar in the black market in the early 2025. In this case, a proposal has been proposed to adopt a proposal “new Syrian pounds”. 2023.

The proposal has intensified the ability of the local production, and the state capacity to control the liquidity and the cutting of the central bank, which has intensified the interruptions of the exchange market and leads to the dominance of cheap imports at the cost of local industry.

But Syrian economists emphasize that the elimination of zeros in the absence of true economic and productive reform leads to the repetition of the currency collapsing, and that the success of such a policy depends on the growth of growth and market faith.

Lebanon … from removing zeros to further printing

On the other hand, Lebanon takes a different way; Instead of eliminating zeros that had earlier proposed, the Bank of Lebanon announced the purpose of issuing a new cash category worth 500 thousand pounds and a million pounds, with the aim of facilitating daily transactions in the light of the national currency, and lost 98 per cent of its value from 90 pounds.

This decision has led to a widespread conflict among those who warn the institutional need and its inflation dangers imposed by the expanded monetary alliance, especially in addition to pumping a new sizes of liquidity without control. As countries like Turkey and Brazil have done in the past, some believe that eliminating zeros is a more effective option, but the cost of modernizing the currency and modernizing banking systems is expensive in the light of the state.

Lessons of international experiences

The experience of eliminating zeros from national currency is often a tool in the history of countries suffering from high expansion and declining economic conditions. The first of these efforts returns to Germany after World War II, when financial losses lead to inflation explosion, the currency is sought.

From the sixties of the last century, about 71 countries have taken this action, with success and failure at various levels. Brazil is one of the most important examples, as it has seen the waves that eliminate zeros during the 1960s and ninety -fourth inflation. In 1967, the “Cruisero” removed three zeros from the coin, then in 1981, then in 1993, but in 1993, the high inflation rates were difficult to discipline, which indicates that monetary solutions without deep economic version are not enough.

When it comes to the Netherlands, this has been the result of the discovery of natural gas called “Dutch disease” in the 1960s, leading to extensive inflation stress. However, the affairs of the Dutch government with the crisis were classified by strict complex policies, eliminating the four zeros of the currency, which helped to have inflation and restore economic balance.

On the other hand, Zimbabwe is a reckless example of the failure of this option when there is no radical versions. In 2003, the authorities removed the three zeros of the currency and the inflation rates exceeded 1,000 percent. As the decline continues, the currency collapses completely, and after inflation, the fiction has reached a fictional level, amidst lack of confidence in monetary and economic policies.

In this case, the experience of Torky is more balanced, as the stage of removing six zeros from Lira in 2005 came after years of collecting inflation. When the dollar exchange rate reaches a million pounds, daily transactions are stressful. But in parallel to monetary reform, Ankara has made several measures to improve the management of the economy, which has revived confidence in the national currency and has contributed to the achievement of the modern growth rate in the next year.

A beautification of new start or reality?

The elimination of texts from international experiences indicates that the elimination of zeros can cause a positive change, but only when it is associated with deep economic and institutional reforms. Accordingly, the feasibility of this stage in Iran, Syria and Lebanon depends on the availability of a true political will to adopt comprehensive reforms. It is not a magic solution to eliminate zeros, but it is not a magic solution to improve accounting and psychological performance, but it is not sufficient if it does not support if it does not support the central bank’s independence, reforming public economy, fighting corruption and providing a safe environment for productive investment.