# What are the benefits of reducing zeroes from currency (eg: Iran)?

Recently, Iran decided to replace its old currency to a new one.

Quoted from Wikipedia

A proposal has been agreed to by the Iranian parliament to drop four zeros, by replacing the rial with a new currency called the toman

I have started studying basics of economics very recently. And I assumed the previous and new situations to be something like:

Imaginary Situation 1

Value of each coin = $1 Total coins = 1000 Value =$1000


Imaginary Situation 2

Value of each coin = $10 Total coins = 100 Value =$1000


Since, there are less number of coins it might be easier to perform transactions. That's my assumption of the possible benefits of this scheme.

Question:

1. Is the assumption correct?

2. Any other benefits of such a scheme?

• Doing this in the US would make no cents! Mar 3, 2021 at 1:13
• Note that the US half-cent coin was discontinued in 1857. The value of the coin then was equivalent to about \$0.15 today. Mar 13, 2021 at 23:11