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.


  1. Is the assumption correct?

  2. Any other benefits of such a scheme?

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

Instead of the word "benefit" I prefer to use the old Saxon word "bebebebebebebebebebenefit". Some people say using the shorter word has bebebebebebebebebebenefits, but I don't see any.

P.s.: coins and notes of extremely small value are usually removed from circulation. It is unlikely the average person would ever pay with 1000 coins.

  • 1
    $\begingroup$ bebebebebebebebebelaugh out loud. $\endgroup$ – user253751 Mar 2 at 11:52

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