Iran is cutting 4 zeros from the rial as they run out of space on their notes!

[Hispo]

I am from Venezuela, si i can easily relate to that, in previous years here we have inflation which could easily go beyond 10.000% per year. Literally we had to remove eleven zeros off your banknote and prices changed while people were on a line at their preferred supermarket waiting for their turn to pay for whatever they needed.

Anyways, it is not a surprise to me to see some government antagonist of the United Sates having problems with their national FIAT, national sanctions will always have a negative effect on countries which rely much on oil and do not have much dominance over their own economy, that was and continues to be the case of my country Venezuela, if China was not such a super power as it has managed to be in these years, I am sure my government would have gotten replaced by now and also de government of the Islamic Republic of Iran.

More reasons for eastern governments to adopt Bitcoin.

[stompix]

Imagine a currency that was 1.25% of the USD in 1980 becoming 0.000085% of it.
From a peg of 80 rials to a $ it has come down to 1,150,000 rials for a dollar.

Did I say 1,150,000 rials for a dollar ?
Two months later and it's 1.410,000 rials!!!
Imagine losing 25% against the dollar in just two months!
It's got so bad they even fired their CB chief:
https://www.iranintl.com/en/202512297350

And this country on the brink of bankruptcy, with people who can't afford food or gas was called by some morons a superpower! 

[STT]

Reminds me of the old vs new Russian Ruble, I think it was a conversion of 10,000 to 1 in that case.   Whats generally true just so we aren't picking on any particular country is that with any FIAT money, this happens sooner or later.
  All the Federal Reserve says to counter this is that they don't want a disorderly market, not that the decline wont occur but by their book it will occur slowly over time not all at once as is being noticed in Iran right now.
  It looks bad but in the end citizens always end up poor holding government money, I would take the lesson as coming to us all in the end.

[Hispo]

...

And this country on the brink of bankruptcy, with people who can't afford food or gas was called by some morons a superpower! 

There seems to be some people who believe that any country which manages to get nuclear technology automatically becomes a superpower, in the case of Iran they have not gotten nuclear weapons yet, but one cannot deny they have the capabilities to do so.

Also, it catches my attention how there are people there who cannot afford to pay for gas, considering Iran has massive reserves of energy underground and they have the cheapest electricity on the planet.

I don't think Iran is at the brink of bankruptcy but they are certainly facing many economical problems at the same time.

[mindrust]

Imagine a currency that was 1.25% of the USD in 1980 becoming 0.000085% of it.
From a peg of 80 rials to a $ it has come down to 1,150,000 rials for a dollar.

Did I say 1,150,000 rials for a dollar ?
Two months later and it's 1.410,000 rials!!!
Imagine losing 25% against the dollar in just two months!
It's got so bad they even fired their CB chief:
https://www.iranintl.com/en/202512297350

And this country on the brink of bankruptcy, with people who can't afford food or gas was called by some morons a superpower! 

What difference does it make at this point? They can lose another 25% against the dollar in a couple of months and nobody there will feel anything anyway. They are already bottomed out. Tbh I don’t really understand what they did to deserve this treatment from the western countries. As far as I am concerned, these guys are only guilty because they want to have their own nuclear weapons and are he west blames them for this and fall them terrorists. In my opinion they are trying to prevent Iran to become another Russia because Russia alone is already strong enough and giving the west a very hard time.

That’s the thing with the technology developments. Once it is out and used, There will always be someone somewhere who’ll figure out the mechanism behind that tech.

[DrBeer]

I'm sure everyone is familiar with that picture of the USD losing value over a century but still that's nothing compared to this.

Imagine a currency that was 1.25% of the USD in 1980 becoming 0.000085% of it.
From a peg of 80 rials to a $ it has come down to 1,150,000 rials for a dollar.

Of course, getting their ass kicked by Israel and the total humiliation didn't help so with inflation of over 35% a year, declining oil and gas production and price the rial is on such a freefall they can't even deal with normal numbers anymore.

As banks collapse right and left, you get news like this:

Iran’s Central Bank revoked Ayandeh Bank’s operating license on Thursday, dissolving one of the country’s largest lenders due to massive losses and chronic inefficiency in another sign of gathering economic storm clouds as sanctions bite. Farzin said that the bank had 5.5 quadrillion rials ($5.1 billion) in accumulated losses, 3.13 quadrillion rials ($2.9 billion) in overdrafts, and a negative 600 percent capital adequacy ratio.

Yes, they are using quadrillions there!

If you still don't understand the sorrow of the situation, this thing:


Is worth 0.1 cents!


Each sheet in this premium toilet paper is worth 0.3 cents!

Oh yeah, and a Bitcoin is about 110 000 000 000 rials, and the whole market cap of crypto is
4 000 000 000 000 000 000 rials! Those are quintillions, when was the last time you used that number?  

What do you mean? This is SUCCESS!!! Iran, with its wise government and stable economy, has the highest real value of all real currencies! Everyone is a millionaire or even a billionaire! Which of the “decaying West” countries has been able to provide such a level of income to its citizens? )))
Of course, I feel very sorry for the people of Iran, because galloping inflation in a weak and limited economy  causes huge problems for people,  and this cannot be cured by removing zeros from paper... The saddest thing is that the people of Iran do not deserve such a fate!
I hope the people of Iran will make the right decisions and return the country to prosperity, which they deserve and which was stolen from them by dubious leaders.

[stompix]

Reminds me of the old vs new Russian Ruble, I think it was a conversion of 10,000 to 1 in that case.   Whats generally true just so we aren't picking on any particular country is that with any FIAT money, this happens sooner or later.

Neither the dollar nor the pound has suffered such a thing. Not even the yen despite the defeat in ww2!

Russia did it 5 times!!!!! in a century!
Russia has cut 15 zeros, so if we count at the start 1 dollar to 1 ruble now it's 1 dollar to 1 000 000 000 000 000 original rubles!

What difference does it make at this point? They can lose another 25% against the dollar in a couple of months and nobody there will feel anything anyway. They are already bottomed out.

Yeah, /remind me in two months!

As far as I am concerned, these guys are only guilty because they want to have their own nuclear weapons and are he west blames them for this and fall them terrorists.

Nothing about beating women to death because they don't cover their hair or dare to sign in public? Nothing?

[DrBeer]

It seems that the Ayatollah regime is facing completely different problems on the horizon, where cutting zeros on paper will no longer suffice...  It seems that soon it will not be zeros that will be removed from banknotes, but portraits of Ayatollah Khomeini himself, and he will urgently have to look for a new refuge, and most likely it will be Moscow
That is, if he is lucky and Trump does not carry out the same short and effective operation against this criminal.

[SUPERSAIAN]

Iran, due to years of high inflation, has decided to remove four zeros from banknotes because there's hardly any space left to write numbers. Look at the severity of the situation. Inflation has reached such a point that there's no room left for zeros on banknotes. You'll see many scenes of people carrying bags full of money just to exchange a few dollars.

Using money like this is terrible, really terrible. Changing, carrying, and making payments with money is incredibly difficult.

[EFS]

We had started using trillions and quadrillions, then one day the government decided to remove 6 zeros from the Turkish Lira. In the end nothing really changed, only the banknotes were renewed. Even after 22 years, some people still talk in the old currency.
As a result, the removed zeros are coming back one by one due to high inflation.

Iran's inflation is not different from ours. They will soon add back the zeros they removed.

[DrBeer]

We had started using trillions and quadrillions, then one day the government decided to remove 6 zeros from the Turkish Lira. In the end nothing really changed, only the banknotes were renewed. Even after 22 years, some people still talk in the old currency.
As a result, the removed zeros are coming back one by one due to high inflation.

Iran's inflation is not different from ours. They will soon add back the zeros they removed.

The problem is that removing zeros from banknotes does not solve the root of the problem. It's like trying to treat a serious illness by smearing it with green paint so you can't see the signs of the disease, without actually fighting the disease itself. Inflation is a serious illness of the economy and, as a rule, of not very sensible government. It can be anything from an unreasonable tax policy to isolationist measures or, for example, bringing sanctions upon the country, or all of these events together, as is definitely happening in Iran. Therefore, no matter how many zeros you remove, until you fix the economy, there will be no real, rather than visual, results.

[WillyAp]

Iran's redenomination was undoubtedly intended to address the severe inflation it was experiencing. This inflation was influenced by real economic conditions (macro and micro) as well as external pressure from global elites through international geopolitical and monetary instruments. Redenomination was also the most realistic step to win public sentiment because it had a temporary psychological effect.

Iran's inflation was largely due to domestic economic conditions. As a country rich in oil resources, Iran suffered from the oil curse syndrome. With a high dependence on oil and gas revenues, massive energy and food subsidies, limited production and capital, a dual exchange rate, and a disconnection from the global financial system, printing money became a problem because it was not accompanied by increased production.

Still they were able to finance several proxies.
That is the issue with Ideology in government, it channels funds elsewhere, not necessarily allined with the will of the people they govern.

[yhiaali3]

Removing four zeros from the Iranian currency is a staggering figure that demonstrates the extent of the corruption and decay plaguing the entire Iranian economy.

In my country, we have a similar situation, albeit on a slightly smaller scale. Just a few days ago, the government decided to remove two zeros from the local currency and issued a new one. They think that by removing zeros, they will solve the economic problems, while in reality, they are only getting worse.

Only about 14 years ago, 50 of my local currency were worth $1. Today, $1 = 12,000 local currency! This is massive inflation, but we haven't reached Iran's level yet.😉

[stompix]

Only about 14 years ago, 50 of my local currency were worth $1. Today, $1 = 12,000 local currency! This is massive inflation, but we haven't reached Iran's level yet.😉

Fourteen years ago, my currency was worth 1.32 $, it's now worth 1.16 $ 
And some think that the Euro is dead and BRICS countries (which Iran is a member lol) will invent the new power currency that will replace all.

We had started using trillions and quadrillions, then one day the government decided to remove 6 zeros from the Turkish Lira. In the end nothing really changed, only the banknotes were renewed. Even after 22 years, some people still talk in the old currency.

Not great, not terrible, actually worse than one would wish for.
But still, you did in 45 years what Iran did in 20, and they are not over yet!

[yhiaali3]

Only about 14 years ago, 50 of my local currency were worth $1. Today, $1 = 12,000 local currency! This is massive inflation, but we haven't reached Iran's level yet.😉

Fourteen years ago, my currency was worth 1.32 $, it's now worth 1.16 $ 
And some think that the Euro is dead and BRICS countries (which Iran is a member lol) will invent the new power currency that will replace all.

The new BRICS currency, called UNIT, was supposed to launch this year, 2026, and was intended to be backed by 40% physical gold and 60% a basket of BRICS currencies. However, I don't think it will see the light of day anytime soon.

There are disagreements among the BRICS countries themselves regarding the new currency even before it's born. China and Russia, the two largest members of the BRICS alliance, are as close to each other as they are to the United States.😂

India opposes the project because it fears Chinese dominance, while Brazil and South Africa tend to be cautious and prefer strengthening trade in their national currencies rather than a new currency.

[SirLancelot]

Iran, due to years of high inflation, has decided to remove four zeros from banknotes because there's hardly any space left to write numbers. Look at the severity of the situation. Inflation has reached such a point that there's no room left for zeros on banknotes. You'll see many scenes of people carrying bags full of money just to exchange a few dollars.

Using money like this is terrible, really terrible. Changing, carrying, and making payments with money is incredibly difficult.

What if they make some short cuts like instead of writing 1000 for thousand, they can just use the letter k for it or called it 1k? As for the value of the money, they can just upgrade the denomination, so that we won't be needing to carry too much money for doing a transaction. But yeah, this is the hassle of money, very far from a digital currency that no matter how high is the amount is, the portability is still there.

It is just that traditional money are more direct and can be use even without the need of an internet connection or another device. Another is that a digital currency such as crypto (bitcoin) can also help ease the issue of inflation. 

[Cheema02]

People may argue that sanctions are the reason the currency and inflation are so high in the country, but I disagree. A country with so many high denominations of currency notes, when facing such a dead currency, screams corruption. What goes through the heads of the leaders when they decide to make another currency higher than the previous one? Like in 2010 when they created the 100,000 bank note. What were they trying to achieve? The currency was already dying when a 50,000 note was the highest in the country, but somehow, they still went ahead to create something higher than that instead of looking for a way to scrap ridiculously high currencies and make the currency scarce.

You make realistic arguments about Iran's currency collapse. As we know die to sanctions Irani Riyal struggle to stable in market but we not have explanations how this collapse was happens. back in 2010 authorities of that time was issued a new currency note of 100,000 rial then Iranian Riyal automatically losses its worth in public. At that time the authorities don't make policies like addressing inflation, reducing corruption they focused on printing currency at large scales as a solution of economy collapse. the real solutions is the cutting four zeros may improve accounting but it doesn't restore  trust. So we want to fix financial problems we required structurally reforms and credible government.

[STT]

In the 1920's with inflation moving so fast, at the time they crossed out the millions printed on a bank note and overprinted billions instead.   It saved alot of time plus effort avoiding reprinting the same junk notes and in 30 days it would be pure trash again anyway.   So time repeats and Iran is on the same path as 1920's Germany post war it was a bad setup for sure.
   In the 1990's the new post soviet Russia changed the old ruble into new ruble but if you owned the right things like the giant gas companies it was a good time to profit I believe; many in the population ended up very much poorer for the new economy hence the ironic positive views on the good old days.

  There are many other examples, what I've often noticed true is a commodity based 'rich' country can become captured by a military based & violent government that kills its population but pays the army & bills with sales of that commodity, oil, 'blood diamonds', opals in Myanmar.
  Oil being so low currently is hurting Iran most likely plus they have isolated themselves by continual funding of terrorist cells in surrounding countries across the middle east.

   Point being I believe its best not to look on as if superior to these failures.  The failure of currency is systemic it wont just have repeated every decade for the last hundred years but in the future also be repeated; it might not even be delayed long for the next country after Iran.

[harapan]

Soon coming to a country near you.  This is the inevitable outcome for every FIAT out there. You are rightfully making fun of the Iranian Riyal but there isn’t a single FIAT currency in history that lasted forever. All of them die eventually. The USD too. Look at what happened to USD in a couple years. Godl doubled against usd in 2 years or smth. Look what happened to the purchasing powa of the USD since the 1900’s and the US isn’t under any sanctions like Iran. Let’s invest in real money. Hodl godl and bitcoin. The others are (including USD) all crap.

This is massive. Laughing at the same FIAT currencies no different from your dollar backed by nothing but violence and bullying shows low IQ to me. They are in conclusion the results for all these. They have sanctioned Iran for years and tried to regime change their leaders too many times. The sanctions has led to businesses not functioning properly and which has also lead to these riot within. Since they can not get thei way with sanctions, they try to break Iran from inside. Iran has survived years of being suffocated, they will do continuously.

[DrBeer]

In the 1920's with inflation moving so fast, at the time they crossed out the millions printed on a bank note and overprinted billions instead.   It saved alot of time plus effort avoiding reprinting the same junk notes and in 30 days it would be pure trash again anyway.   So time repeats and Iran is on the same path as 1920's Germany post war it was a bad setup for sure.
   In the 1990's the new post soviet Russia changed the old ruble into new ruble but if you owned the right things like the giant gas companies it was a good time to profit I believe; many in the population ended up very much poorer for the new economy hence the ironic positive views on the good old days.

  There are many other examples, what I've often noticed true is a commodity based 'rich' country can become captured by a military based & violent government that kills its population but pays the army & bills with sales of that commodity, oil, 'blood diamonds', opals in Myanmar.
  Oil being so low currently is hurting Iran most likely plus they have isolated themselves by continual funding of terrorist cells in surrounding countries across the middle east.

   Point being I believe its best not to look on as if superior to these failures.  The failure of currency is systemic it wont just have repeated every decade for the last hundred years but in the future also be repeated; it might not even be delayed long for the next country after Iran.

Tell me, did you live in the USSR/RSFSR (one of the republics of the USSR that became Russia) in the 1990s? I assume not.
 I lived there. So let me tell you about the “Pavlovskaya reform,” the one you spoke so positively about. There was no private business back then; everything you described belonged to the state. When the USSR was falling apart, the population was already suffering (most citizens), and the government was unable to stabilize the economy due to extremely poor management.
 And then one fine day, the money in people's savings accounts and wallets simply... became much cheaper. The amounts that people had been counting on, for example, to buy a car, turned into amounts that could only buy a couple of dozen kilograms of pasta... Now tell me, how did the population react to such “reforms”?