Why has Iran removed zeros from its banknotes?
Besieged by runaway prices and food shortages, primarily as a result of the sanctions imposed by the United States, Iranian lawmakers have decided to give the Islamic republic’s currency a new lease of life - or so it seems.
“It will have more of a psychological impact as instead of paying 250,000 rials for a packet of eggs, you’ll pay just 25 tomans,” an Iran-based journalist toldHigh inflation, a years-long headache for Iranians, has eroded the value of the rial. It costs more than 150,000 rials to buy one US dollar in the open market while the official exchange rate is pegged at 42,000 rials to one US dollar.
“In any case, people generally use debit cards or what we call traveller’s cheques to make payments in most cases,” the journalist said. The replacement of the currency notes won’t have a significant impact on Iran’s inflation rate of 40 percent, which is the result of US-led economic isolation and a sharp drop in the price of oil. Iran derives most of its export revenue from oil and gas sales.
Knocking off zeros from the currency is especially cosmetic in the face of high employment and difficulties that businesses and households face in finding imported goods like medicines. In 2009, the country struck off 12 zeros from the Zimbabwean dollar after a bout of hyperinflation that hit 79 billion percent with prices doubling every 24 hours. The highest denomination note was 100 trillion Zimbabwean dollars - and that wasn’t enough to buy a loaf of bread. Argentina, Brazil and Nigeria are among others who have resorted to redenomination largely in the wake of runaway inflation.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
29 soldiers receive Purple Hearts following Iran missile attackInitially, the Pentagon said there had been no injuries as a result of the missile attack. As the first reports emerged that service members were experiencing TBI symptoms, Pres. Trump seemed to minimize the injuries as 'not very serious.'
Read more »
Ohio slashes state budget by $775 million for two months to offset impact of coronavirus pandemicGovernor Mike DeWine announced significant reductions in state spending to schools, colleges, Medicaid programs and government agencies on Tuesday.
Read more »
Airbnb expects revenues to be slashed by more than half this year, CEO says - Business InsiderAirbnb expects 2020 revenues to be less than half of what they were in 2019, even once travel resumes, because of fallout from the COVID-19 pandemic.
Read more »
Hollywood’s Disfigured Villain Trope Does Major Harm to Disabled People'The idea that to be beautiful means to be good and to be disfigured means to be evil is not new.'
Read more »
Why Doing Nothing Is As Healthy for You As Working Out'Even when I did have time away from my computer during my work cyclone to run, shower, or eat, I was also listening to podcasts or scrolling through Instagram. What I didn’t do was daydream, or stare blankly into space, or do any kind of nothing at all.'
Read more »