Iran removed 4 zero from its currency
Think, you go to buy a packet milk and you have to take the bag and take the notes. This may sound strange to hear, but the inflation in Iran had happened. The prices of things increased so much there that people had to pay for millions of crores even for small goods. To deal with this trouble, the government of Iran has taken such a decision, which is being discussed all over the world.
Actually, Iran has passed the law to remove four zero from its currency i.e. ‘Rial’. This simply means that the note which is priced today is 10,000 riyal, it will now be considered only 1 riyal. That is, now it will be very easy to calculate. Currently, the price of $ 1 is equal to about 11,50,000 riyal, but after removing zero it will be close to 115 riyal.
Iran takes this decision due to this
Due to such a large number of money in the posture, there were problems in everyday functioning. Inflation has increased so much that the price of riyal has reduced greatly. People were also buying small things by taking 10,000, 1,00,000 notes. Due to this, there was a disturbance in economic work. The price of everything was so zero that the accounting had become a headache, even for small purchases, he had to give thick bundles of notes. When even a minor thing is found by paying crores, the honor of money is over. The government has taken this step to eliminate all these problems and to ‘respect’ its money again. With the removal of four zero, the numbers will now become smaller and the money transaction will become easier as before.
Old notes will also continue to run
This decision of the government will not be applicable suddenly or in one stroke. There is no need for people to be upset. A complete plan has been made for this. The government has given a long time of 3 years to change old notes and run new notes. During this 3 years, both old and new notes will run in the market. No one can refuse to take old notes. Banks will slowly withdraw the old notes and issue new notes in their place, so that no one has any problem.
Will the goods be cheaper in Iran now?
This is the most important question that will come in everyone’s mind. Will the removal of four zeros make things cheaper in Iran? So the answer is, no, it is not so. Understand this with an easy example. Suppose, your salary is 20 lakh riyal and one kilo of sugar comes from 20,000 riyal.
You could buy 100 kg of sugar in the salary of 20 lakh riyal from the old account. At the same time, according to the new account, now after the four zero is removed, your salary will be 200 riyal and the price of one kilo of sugar is 20 riyal. Meaning now you will still be able to buy 100 kg of sugar in the salary of your 200 riyal. That is, there has been no change in your power strength. If you have changed, only the number written on notes. This is just a way to make the account easier, not to reduce inflation.
Venezuela has also made such a decision
Please tell that Iran is not the first country to do so. Earlier, Venezuela from her currency notes in October 2021 Zero has removed.