And by a reset on currency I mean a reset on the value of their currency. Take Iranian rial for example, their exchange rate is 371,992 to a single U.S. dollar. Could a rial ever have a 1:1 ratio without ever collapsing? I obv not a finance bro
In: Economics
Fyi, it is actually Iranian rial ha 600-700K:1 ratio in reality. What you mentioned is the “official” rate.
Going back to your question, yes, it is possible to remove 6 zeros, and go even better than to 1:1 case, and government wants to do that once in a while (nowadays, they fade 0s in printed rials!), see this for example:
Iran are removing 4 zeros from its currency to deal with inflation
byu/Tim_uk74 inForex
But it’s not really needed tbh, as most of the transfers are happening online, and when people are talking with each other, one they say 1 toman (i.e. 10 rial), they actually mean 1 million rial!
As others pointed out, removing zeros doesn’t change anything in the livelihood of people in Iran. First and foremost, you need to control the hyperinflation, which is not possible without having a good relation with rest if the world.
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