Removing Zero From Iran’s National Currency: Economic Stability Or A Showy Act? – OpEd
Under the corrupt rule of the mullahs, Iran’s economy is facing deep, complex, and worsening challenges, including chronic inflation and the sharp devaluation of the rial to the rising growth of liquidity. These factors have severely weakened the national currency and reduced the purchasing power of the people.
In such circumstances, the government’s proposal to remove zeros from the national currency, which is celebrated by the administration, raises this question: Can this policy be an effective solution to the economic crisis, or is it merely a superficial, hollow action and deceptive propaganda?
The Importance of National Currency in the Economy
In the complex world of modern economies, currency is recognized as a symbol of stability and trust in financial systems. When the value of a national currency declines due to overwhelming inflation and economic instability, governments seek solutions to restore confidence and stability to their monetary unit. The policy of removing zeros from the national currency is one such solution that has been employed by various countries throughout history.
One of the main reasons for implementing the policy of removing zeros is to control inflation and restore monetary stability. High inflation often leads to an abnormal increase in monetary figures, making their management in transactions and accounting challenging. This situation not only reduces economic efficiency but also significantly increases the costs of printing and managing banknotes. Removing zeros in such circumstances simplifies and clarifies the monetary system, thereby improving financial efficiency.
Enhancing public trust and creating a positive psychological impact are also among the motivations for implementing this policy. Reducing the number of zeros in the monetary unit can foster a sense of economic improvement among the public. This policy is often perceived as a symbolic act demonstrating the government’s commitment to economic reform.
Another advantage of this policy is the enhancement of the international credibility of the national currency. In countries experiencing severe devaluation of their currency and extreme exchange rate volatility, removing zeros can improve the standing of the national currency in international trade and foreign investment. This action portrays a positive image of the economic system and facilitates commercial processes.
In countries where continuous inflation has severely reduced the value of the national currency, the increase in the number of zeros on banknotes not only complicates daily transactions but also undermines public trust in the currency. In such situations, removing zeros can be an effective measure to restore stability and simplify the monetary system.
The experiences of countries such as Turkey, Brazil, Russia, and Argentina show that the removal of zeros will only succeed if accompanied by structural reforms and sustainable economic policies. In cases where high inflation and currency volatility remain uncontrolled, this policy can quickly become ineffective and even create new problems.
The State of Iran’s Economy and Its Challenges Ahead
Morteza Afaghah, a monetary and banking expert, states about the removal of zeros from the national currency:
“With such superficial and legal measures, inflation cannot be controlled. Iran’s inflation stems from economic, social, and cultural structures, and it is so deep that even economic measures, such as reducing liquidity levels in recent years, have not managed to control it.”
On January 4, Kabna News website wrote: “The most important precondition for the success of removing zeros is the stable control of the inflation rate. In circumstances where prices are constantly rising, the removal of zeros will only have a short-term effect.”
What is certain is that Iran’s economy is facing high inflation rates, continuous liquidity growth, and a lack of economic stability. The excessive printing of unsupported banknotes is a betrayal of the national currency’s strength and a systematic theft of people’s assets by the regime.
In such circumstances, the removal of zeros from the national currency might have a psychological and temporary soothing effect in the short term, supported by regime propaganda and deceptive policies, but it will not have real and lasting impacts. As mentioned, controlling inflation, reducing liquidity growth, and making fundamental budgetary changes are among the essential prerequisites for the success of this policy—conditions that seem unachievable in an occupied Iran under a repressive and warmongering government. Ironically, removing zeros from Iran’s national currency could lead to new problems for the Iranian people, further emptying their pockets for the regime’s looting purposes.
