Economic Stability, Prerequisite For Reforming National Currency

Tehran, Sept 20, IRNA – Whispers on removing zeros from the national currency as one of the economic projects the field of fiscal and monetary policies have been heard from economic officials of the country since the calendar year 1372 (1993-94). Although within that period the plan was somehow put on the agenda of former governments, lack of conditions and constant changes in macroeconomic indicators marginalized its implementation. Despite the fact that implementation of the plan was seriously followed up by the former government, due to high inflation rate and economic instability which are imperative for deletion of zeros from the national currency, the plan was shelved. However, the plan has once again been put on the table of the 11th government. Although economic officials of the government give priority to control of inflation and removing stagnation, they announce that in case grounds were prepared they would implement the plan. Governor of the Central Bank of Iran (CBI) Valiollah Seif has recently said when the economy is stabilized and inflation rate becomes one digit, then grounds are prepared for deletion of four zeros from the national currency. “The Central Bank of Iran is ready to remove zeros but as long as inflation rate is not lowered to one digit or in the absence of necessary conditions, we will not take action in this regard.”/end