Revista Internacional de Economía y Ciencias de la Gestión

DELETING ZEROES FROM NATIONAL CURRENCY Investigation and Analysis of Removing Zeroes from Iran’s National Currency

Abstract

Seyed Valiollah MirHosseini , Reza Zare Rad

Not only money is the means of having economic exchanges, it also leaves influences on the national identity of people and the national authority of governments and therefore it can be used as a tool to strengthen national and political identity of different nations. In other words, the value of national currency can affect the perspectives of people towards their economic situation as well as the national identity of their country. If people always expect the devaluation of their currency, this will be a cause of concern for governmental authorities. Hence, it falls upon the governments to boost people’s confidence in their national currency by maintaining its value and thus preventing the phenomenon of “currency replacement”, i.e. taking refuge in foreign currencies. This article first attempt to investigate governments’ aim behind deleting zeroes from national currencies and then presents the conditions and requirements for this undertaking. Then, it will review the experiences of other countries and the history of removing zeroes from national currencies. Finally, the advantages and disadvantages of removing zeros from national currency will be explored.